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Thread: Ireland world champion of mortgage defaults

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    Default Ireland world champion of mortgage defaults

    See Welcome to Ireland, where mortgage payments are apparently optional – Quartz

    The level of Irish mortgage defaults and arrears as shown in the chart in the link above is vastly higher than even Greece's. One estimate is that about a third of this is strategic defaults by home owners who could afford to pay.

    Given the huge backlog of mortgage defaults to be processed,new legislation that corrects a technical flaw in the legal right of banks to reposses houses in mortgage default will set off a massive wave of repossessions. Mortgage loan restructurings will make little difference,going by US experience of extremely high failure rates of restructurings.

    Irish folk memories of 19th century mass evictions of impoverished potato farmers from their one or two acre lots still create public sympathy for people facing evictions from their homes. This could make it very difficult for the government owned banks to proceed with repossessions.However, the government has little choice: it has its marching orders from the Troika and the banks need to raise money from selling off repossessed houses if they are to fund new mortgage lending and new loans.

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    Quote Originally Posted by patslatt View Post
    See Welcome to Ireland, where mortgage payments are apparently optional – Quartz

    The level of Irish mortgage defaults and arrears as shown in the chart in the link above is vastly higher than even Greece's. One estimate is that about a third of this is strategic defaults by home owners who could afford to pay.

    Given the huge backlog of mortgage defaults to be processed,new legislation that corrects a technical flaw in the legal right of banks to reposses houses in mortgage default will set off a massive wave of repossessions. Mortgage loan restructurings will make little difference,going by US experience of extremely high failure rates of restructurings.

    Irish folk memories of 19th century mass evictions of impoverished potato farmers from their one or two acre lots still create public sympathy for people facing evictions from their homes. This could make it very difficult for the government owned banks to proceed with repossessions.However, the government has little choice: it has its marching orders from the Troika and the banks need to raise money from selling off repossessed houses if they are to fund new mortgage lending and new loans.

    The problem won't be getting the properties back, the problem will be preventing a flood of keys being flung back at the lenders. Once this bottle is opened, the banks will go bust. Again.



    D

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    Quote Originally Posted by patslatt View Post
    See Welcome to Ireland, where mortgage payments are apparently optional – Quartz

    The level of Irish mortgage defaults and arrears as shown in the chart in the link above is vastly higher than even Greece's. One estimate is that about a third of this is strategic defaults by home owners who could afford to pay.

    Given the huge backlog of mortgage defaults to be processed,new legislation that corrects a technical flaw in the legal right of banks to reposses houses in mortgage default will set off a massive wave of repossessions. Mortgage loan restructurings will make little difference,going by US experience of extremely high failure rates of restructurings.

    Irish folk memories of 19th century mass evictions of impoverished potato farmers from their one or two acre lots still create public sympathy for people facing evictions from their homes. This could make it very difficult for the government owned banks to proceed with repossessions.However, the government has little choice: it has its marching orders from the Troika and the banks need to raise money from selling off repossessed houses if they are to fund new mortgage lending and new loans.
    Interesting article, though some of the conclusions seem to be a little shaky. And, based on his article in the Irish Times, the 35% strategic default figure seems to just have been made up by Gregory Connor.

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    Politics.ie Member Hewson's Avatar
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    Quote Originally Posted by patslatt View Post
    See Welcome to Ireland, where mortgage payments are apparently optional – Quartz

    The level of Irish mortgage defaults and arrears as shown in the chart in the link above is vastly higher than even Greece's. One estimate is that about a third of this is strategic defaults by home owners who could afford to pay.

    Given the huge backlog of mortgage defaults to be processed,new legislation that corrects a technical flaw in the legal right of banks to reposses houses in mortgage default will set off a massive wave of repossessions. Mortgage loan restructurings will make little difference,going by US experience of extremely high failure rates of restructurings.

    Irish folk memories of 19th century mass evictions of impoverished potato farmers from their one or two acre lots still create public sympathy for people facing evictions from their homes. This could make it very difficult for the government owned banks to proceed with repossessions.However, the government has little choice: it has its marching orders from the Troika and the banks need to raise money from selling off repossessed houses if they are to fund new mortgage lending and new loans.
    Some people are choosing to pay off unsecured debt, such as credit cards, over mortgages because failure to do so can cause more instant hassle than the longer-term problems mortgage default brings. It's not that they don't want to pay, they're just prioritising.

    And that's only in some instances.

    For the mjority in arrears the sleepless nights are still there. While there may be an issue with strategic default, the reality is that in Ireland, unlike other countries, giving your home bck to the lender doesn't clear your debt. You'll have no home but you'll have the millstone of debt around your neck until you pay it off or move abroad and never come back.
    Abortion is an act of violence. Violence demeans humanity, particularly violence against women and children.

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    Politics.ie Member Shqiptar's Avatar
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    There were two other threads about this story but since I can't find them.....ar aghaidh libh.
    Eagla agus eaglais: an bhfuil an fhréamh teangeolaíochta céanna acu?

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    Is there any sign of an introduction of the rule where the mortgaged property is the collateral for the loan?
    "It is important therefore that I clarify to the House that in the first instance there are significant monies within Anglo-Irish to take the strain of loan losses arising over the next three or four years, before State support is engaged." Brian Lenihan 15/01/09

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    All that is missing now is media cheerleaders to extoll the population to "celebrate" this "achievement of the modern Ireland".

    Does this mean that we are significant again in the world's eyes ?

    Maybe a knowitall in a quango might talk about "pride" and the "green jersey", and "punching above our weight" ?
    Coveney's ambition is the be Ireland's next EU Commissar and Ireland will pay a price as he builds his CV to position himself sufficiently loyal to the nEU empire.

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    Politics.ie Member Hewson's Avatar
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    Anyway, we're into our fifth year of this crisis, pumped billions into our banks, taken tax hikes, pay cuts, extra levies, higher unemployment and emigration on the chin and STILL both banks and government are either avoiding or fiddling around with the issue of mortgage default.

    This issue should have been prioritised at the same time as bank recapitalisation, since both issues are inseparable. Instead we have lenders threatening the very people whose taxes went to save their worthless skins.

    The government never plucked up the courage to kick ass in the banks. An indication of just who calls the shots in Irish society.
    Abortion is an act of violence. Violence demeans humanity, particularly violence against women and children.

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    Quote Originally Posted by Hewson View Post
    Anyway, we're into our fifth year of this crisis, pumped billions into our banks, taken tax hikes, pay cuts, extra levies, higher unemployment and emigration on the chin and STILL both banks and government are either avoiding or fiddling around with the issue of mortgage default.

    This issue should have been prioritised at the same time as bank recapitalisation, since both issues are inseparable. Instead we have lenders threatening the very people whose taxes went to save their worthless skins.

    The government never plucked up the courage to kick ass in the banks. An indication of just who calls the shots in Irish society.
    Ah now be fair. We're introducing a scheme of personal insolvency which will only last eight years and the banks will have a veto on who qualifies.
    What makes you think they're calling the shots?
    "It is important therefore that I clarify to the House that in the first instance there are significant monies within Anglo-Irish to take the strain of loan losses arising over the next three or four years, before State support is engaged." Brian Lenihan 15/01/09

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    Quote Originally Posted by patslatt View Post
    See Welcome to Ireland, where mortgage payments are apparently optional – Quartz

    The level of Irish mortgage defaults and arrears as shown in the chart in the link above is vastly higher than even Greece's. One estimate is that about a third of this is strategic defaults by home owners who could afford to pay.

    Given the huge backlog of mortgage defaults to be processed,new legislation that corrects a technical flaw in the legal right of banks to reposses houses in mortgage default will set off a massive wave of repossessions. Mortgage loan restructurings will make little difference,going by US experience of extremely high failure rates of restructurings.

    Irish folk memories of 19th century mass evictions of impoverished potato farmers from their one or two acre lots still create public sympathy for people facing evictions from their homes. This could make it very difficult for the government owned banks to proceed with repossessions.However, the government has little choice: it has its marching orders from the Troika and the banks need to raise money from selling off repossessed houses if they are to fund new mortgage lending and new loans.
    From the article -

    They’re guilty, have confessed their sins and willing to years of painful austerity budgets as penance.

    WTF is this journalist smoking?!
    Once your ability to function within society depends on a government controlled ID card then you are no longer a free citizen.

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