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Thread: 1/3 to 1/2 of Buy to let Investors withholding Mortgage Payments in Strategic Arrears!

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    Default 1/3 to 1/2 of Buy to let Investors withholding Mortgage Payments in Strategic Arrears!

    1/3 to 1/2 of Buy to let investors withholding Mortgage Payments in Strategic Arrears!

    Gregory Connor over at the Irish Economy Blog contends that:" Among the buy-to-let subset, the proportion of strategic arrears in Ireland is likely higher than 35%, and may be greater than 50%, reflecting the particular features of this sub-market (wealthier households, a larger proportion purchased near the height of the boom). "


    The Irish Economy » Blog Archive » How Large Are Strategic Arrears in the Irish Mortgage Market?

    This is a huge problem for the taxpayer and those who rely on any State Services. Very wealthy people are chancing their arm and seeking to strong arm the banks into giving them a debt write down.

    They know that given their negative equity they are not candidates for bank loans to mop up cheap property at the bottom of the market. They are trying to help themselves to debt relief.

    There is evidence to suggest that the growth of mortgage arrears is linked in many cases to these strategic arrears where people who can afford repayments choose not to pay their negative equity property loans.

    Again there is a prospect particularly with wealthy borrowers that they will inherit more wealth in the course of their lives.

    Many will be desperately seeking to secure debt write downs before they come into their inheritances.

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    Politics.ie Member SilverSpurs's Avatar
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    Quote Originally Posted by IbrahaimMohamad View Post
    1/3 to 1/2 of Buy to let investors withholding Mortgage Payments in Strategic Arrears!

    Gregory Connor over at the Irish Economy Blog contends that:" Among the buy-to-let subset, the proportion of strategic arrears in Ireland is likely higher than 35%, and may be greater than 50%, reflecting the particular features of this sub-market (wealthier households, a larger proportion purchased near the height of the boom). "


    The Irish Economy » Blog Archive » How Large Are Strategic Arrears in the Irish Mortgage Market?

    This is a huge problem for the taxpayer and those who rely on any State Services. Very wealthy people are chancing their arm and seeking to strong arm the banks into giving them a debt write down.

    They know that given their negative equity they are not candidates for bank loans to mop up cheap property at the bottom of the market. They are trying to help themselves to debt relief.

    There is evidence to suggest that the growth of mortgage arrears is linked in many cases to these strategic arrears where people who can afford repayments choose not to pay their negative equity property loans.

    Again there is a prospect particularly with wealthy borrowers that they will inherit more wealth in the course of their lives.

    Many will be desperately seeking to secure debt write downs before they come into their inheritances.
    This is the moral hazard of debt write downs. Once you give it him why should I pay my mortgage???

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    Quote Originally Posted by SilverSpurs View Post
    This is the moral hazard of debt write downs. Once you give it him why should I pay my mortgage???
    So you can help the bank fund a mortgage writedown for your neighbour apparently!

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    Quote Originally Posted by SilverSpurs View Post
    This is the moral hazard of debt write downs. Once you give it him why should I pay my mortgage???
    Moral Hazard my Arrse.
    Home purchasers got stung by poor government, incompetent regulators and greedy shortsighted banks. There is no moral hazard not following through with a contract in a rigged market.

    To reverse the question. Why should someone get a house for a 1/3 of the price someone else paid for it? Do you not see moral hazard in allowing that scam to be completed?


    D

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    Quote Originally Posted by DuineEile View Post
    Moral Hazard my Arrse.
    Home purchasers got stung by poor government, incompetent regulators and greedy shortsighted banks. There is no moral hazard not following through with a contract in a rigged market.

    To reverse the question. Why should someone get a house for a 1/3 of the price someone else paid for it? Do you not see moral hazard in allowing that scam to be completed?


    D
    But the investors were planning to own other people's homes ! That was the whole objective. The borrowed money and contracted to pay it all back witht he prevailing rates of interest.

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    Politics.ie Member ger12's Avatar
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    Quote Originally Posted by DuineEile View Post
    Moral Hazard my Arrse.
    Home purchasers got stung by poor government, incompetent regulators and greedy shortsighted banks. There is no moral hazard not following through with a contract in a rigged market.

    To reverse the question. Why should someone get a house for a 1/3 of the price someone else paid for it? Do you not see moral hazard in allowing that scam to be completed?


    D
    But I didn't buy those magic beans for a second or third property. Can I sue, I dunno, because my tax money will eventually pay for someone else's magic beans?
    At 12 weeks the “clump of cells” toes curl, her mouth makes sucking movements, she has a human face and if you prod the tummy she will move in response

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    yet they still collect the rents for these properties chancers
    i owe my allegiance only to the working class

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    Quote Originally Posted by ger12 View Post
    But I didn't buy those magic beans for a second or third property. Can I sue, I dunno, because my tax money will eventually pay for someone else's magic beans?

    There should be some kind of a law to criminalise landlords collecting rents and not paying a mortgage!

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    Where is the evidence that this man hasn't just plucked these figures from his ar$e?
    I have no money, but I love my life.

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    Quote Originally Posted by IbrahaimMohamad View Post
    But the investors were planning to own other people's homes ! That was the whole objective. The borrowed money and contracted to pay it all back witht he prevailing rates of interest.
    I was never an investor. I bought a house to live in it. I have ended up €500k in the red over it.


    D

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