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Thread: MABS: Mortgage Arrears Mechanism Won't Work

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    Politics.ie Member Malbekh's Avatar
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    Default MABS: Mortgage Arrears Mechanism Won't Work

    Fascinating and worthwhile survey by MABS.

    They have conducted a survey of 6000 householders in arrears and found that the majority are in a far older age category that previously thought: 41-65 contrary to the perceived wisdom of first-time buyers in their 30's.

    How then, when these householders have finished with their split mortgages etc, are they going to be able to pay the balance as they will have retired? To mention nothing about the fact that a lot of them can't afford pensions...

    More here:

    Plans to end mortgage misery for thousands won't work, says MABS - Independent.ie


    'MABS Clients and Mortgage Arrears', by Colette Bennett, is due to be published in a few days.
    Last edited by Malbekh; 10th April 2013 at 08:38 AM.
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    Quote Originally Posted by Malbekh View Post
    Fascinating and worthwhile survey by MABS.

    They have conducted a survey of 6000 householders in arrears and found that the majority are in a far older age category that previously thought: 41-65 contrary to the perceived wisdom of first-time buyers in their 30's.

    How then, when these householders have finished with their split mortgages etc, are they going to be able to pay the balance as they will have retired? To mention nothing about the fact that a lot of them can't afford pensions...

    More here:

    Plans to end mortgage misery for thousands won't work, says MABS - Independent.ie


    'MABS Clients and Mortgage Arrears', by Colette Bennett, is due to be published in a few days.

    Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


    Mortality and limited productive life is one reason why kicking the can down the road is no solution.

    Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


    D
    Last edited by DuineEile; 10th April 2013 at 08:50 AM.

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    Politics.ie Member Malbekh's Avatar
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    Quote Originally Posted by DuineEile View Post
    Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


    Mortality and limited productive life is one reason why kicking the can down the road is no solution.

    Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


    D
    I don't think people understand the ramifications of what this means. It would appear that the majority of the 100,000 mortgage arrears have no chance of being paid off in the lifetime of the debtor. So either it will have to be written off by the banks (unlikely), deducted from the estate on death (more likely), or Japanese style generational mortgages.....
    Blessed be the threadmakers.

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    Politics.ie Member sic transit's Avatar
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    Quote Originally Posted by DuineEile View Post
    Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


    Mortality and limited productive life is one reason why kicking the can down the road is no solution.

    Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


    D
    These were people who were legally compus mentis. There was no no coercion involved and caveat emptor is a very harsh mistress. While I have every sympathy for people who do find themselves in this situation they still need to acknowledge that they are partly to blame for it. As regards the article my impression is that the split mortgage approach is one that they believe will not work for many borrowers.
    "There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self." Ernest Hemingway

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    Quote Originally Posted by DuineEile View Post
    Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


    Mortality and limited productive life is one reason why kicking the can down the road is no solution.

    Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


    D

    I love this and you would have been the one laughing at me because I didn't fall for the bullsh!t and lumber myself with a 100% mortgage for shoe box in co Laois. Telling me my rent money was dead money

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    Politics.ie Member Howya's Avatar
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    I think the banks are desperately hoping that property market will rise sufficiently so that when these borrowers get to 65 they can sell and trade down to a smaller house and use the (potential) gain to clear the loan.
    “Still paying, still to owe. Eternal woe! ” ― Paradise Lost, John Milton

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    I wonder how many in the 41 - 60 age group re-mortgaged to provide deposits to assist their children's house purchases ?

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by DuineEile View Post
    Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.
    +1

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    Quote Originally Posted by DuineEile View Post
    Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


    Mortality and limited productive life is one reason why kicking the can down the road is no solution.

    Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


    D
    People didn’t bother to do a financial plan when they were making the decision. They were keeping prudent people out of the housing market by paying rising prices. When you take out a mortgage you have to factor in interest rates, job changes and personal decisions. Many didn’t even plan for the cost of kids or their education.

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    Quote Originally Posted by Howya View Post
    I think the banks are desperately hoping that property market will rise sufficiently so that when these borrowers get to 65 they can sell and trade down to a smaller house and use the (potential) gain to clear the loan.
    This trade down nonsense ia about as daft as the Trade Up nonsense!

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