Eye opening stuff from John Moran yesterday, none of the couching that politicians engage, just hard reality.
1. Legislation is going to be passed to get around the Dunne judgement. Banks are going to be able to repossess houses as a last resort where there is no realistic possibility of repayment of the principle.
2. Large subsidising of mortgages seems to be ruled out: "It is not necessarily appropriate that banks should be using taxpayers' money to subsidise people living in accommodation, even if it is a family home, that is beyond their means."
3. On repossession rates in other countries: "Maybe we will move to those levels. We have had as serious a crisis as everybody else."
Now, The UK had 159000 borrowers in arrears in 2012, and in Q3 repossessed 8200. And that was their lowest quarter in 5 years.
We have 51353 residential mortgages in over 360 days arrears. If we were to head towards UK stats then, that's about 2500 homes being repossessed a quarter for us.
BBC News - Home repossessions drop to five-year low, lenders say
This is it guys. This is your warning. It's as clear as it possibly can be. If you look at your finances, look at your projected income of the next 10 years and look at your mortgage and can't see a way that you're going to be able to repay it, this is your warning that you need to start preparing to exit the contract.
Fianna Fáil’s Michael McGrath said while measures such as interest-only payments and lengthening mortgage terms would help some homeowners, others would need a complete mortgage restructuring.
Dead right. Every effort should be made by the bank to move to Interest only for a period of time (with no monetary gain for hte bank), lengthening terms should be offered. But there's a cut off point, and if you haven't been able to pay anything in over a year, your number's up.
The govt are being up front and honest with you. They are passing legislation to make easier to repossess your home. Hopefully your bank has been as well. Get to a solicitor, get to a financial advisor, see what can be rejigged, see where you stand. But the days of relying on a legal stalemate/reluctance of banks to action appear to be over.