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Thread: Ireland, the global champion of mortgage arrears

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    Default Ireland, the global champion of mortgage arrears

    There is definitely some wrong and something going. The startling difference in mortgage arrears between Ireland and the rest of the crisis ridden countries shows that the policy of the government on banking loans and mortgage arrears is clearly not working. How come all the PIGs have the late mortgage arrears rate of no more than 4% whereas Ireland ("We are not Greece") has the rate at more than 13% and growing. This doesn't make common sense and suggests that the so-called "strategic default" may be playing a big role?

    • 25% of Ireland’s home loans are distressed (S&P)
    • 11.9% of Ireland’s mortgages late by more than 90 days (Irish Central Bank)
    • Deutsche Bank believes its closer to 16%
    • 35% of mortgage arrears are “strategic non payments” (Gregory Connor, Maynooth University)

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

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    Quote Originally Posted by sheehan View Post
    There is definitely some wrong and something going. The startling difference in mortgage arrears between Ireland and the rest of the crisis ridden countries shows that the policy of the government on banking loans and mortgage arrears is clearly not working. How come all the PIGs have the late mortgage arrears rate of no more than 4% whereas Ireland ("We are not Greece") has the rate at more than 13% and growing. This doesn't make common sense and suggests that the so-called "strategic default" may be playing a big role?

    • 25% of Ireland’s home loans are distressed (S&P)
    • 11.9% of Ireland’s mortgages late by more than 90 days (Irish Central Bank)
    • Deutsche Bank believes its closer to 16%
    • 35% of mortgage arrears are “strategic non payments” (Gregory Connor, Maynooth University)

    Welcome to Ireland, where mortgage payments are apparently optional – Quartz
    If your neighbour gets away with not paying his mortgage then why should you pay. this is the moral hazrd of debt relief.

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    I think its because its feared too many repossessions might destabilise the govt and our bankruptcy laws are designed to be punitive, which gives people no incentive to start again at least not here. I wouldn't be surprised to find some properties have been abandoned, not that that will help much a poor credit rating will follow anyone.

    Repossessions must start soon and property must be allowed to find its natural value, which isn't much, when that happens FG will be lucky if they don't get tarred with the FF brush, as for Labour they are already dead in the water.
    Its Up to ME

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    Politics.ie Member Telemachus's Avatar
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    Another banking funding crisis will occur before the Arrears issue is addressed.

    The government only do reactive politics.

    There are people living in homes up and down the country on interest only arrangements who will never work again, never mind pay off the balance of their mortgages.
    ..the Irish nation can become other than white, by privileging the voices of the racialised and subverting state immigration but also integration policies. – Ronit Lentin

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    The old Strategic Default chestnut again.

    There are many reasons for our high arrears rate including:

    Draconian bankruptcy regime - people will hold on long after the writing is on the wall, when, in another country, they would have declared bankruptcy

    High home ownership rates - people in Ireland bought houses that couldn't afford them because of our national property obsession (promoted by the then government). In other countries, many of these people would have rented rather than bought.

    The banks in Ireland are allowed to pursue you even if you give up the house, literally to the ends of the earth, so no point in handing back the keys, like in many other countries.

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    Quote Originally Posted by ManInTheArena View Post
    The old Strategic Default chestnut again.

    There are many reasons for our high arrears rate including:

    Draconian bankruptcy regime - people will hold on long after the writing is on the wall, when, in another country, they would have declared bankruptcy

    High home ownership rates - people in Ireland bought houses that couldn't afford them because of our national property obsession (promoted by the then government). In other countries, many of these people would have rented rather than bought.

    The banks in Ireland are allowed to pursue you even if you give up the house, literally to the ends of the earth, so no point in handing back the keys, like in many other countries.

    What he said.





    D

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    Politics.ie Member Analyzer's Avatar
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    Time to break out the bubbly. Let's all celebrate. Let's all get on board and feel proud.

    Another first for the modern Ireland. We need to praise ourselves for courageously embracing this trend, and quickly surpassing others for whom we were lagging behind for so long.

    We are even punching above our weight, it seems.
    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 Howya's Avatar
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    Quote Originally Posted by sheehan View Post
    There is definitely some wrong and something going. The startling difference in mortgage arrears between Ireland and the rest of the crisis ridden countries shows that the policy of the government on banking loans and mortgage arrears is clearly not working. How come all the PIGs have the late mortgage arrears rate of no more than 4% whereas Ireland ("We are not Greece") has the rate at more than 13% and growing. This doesn't make common sense and suggests that the so-called "strategic default" may be playing a big role?

    • 25% of Ireland’s home loans are distressed (S&P)
    • 11.9% of Ireland’s mortgages late by more than 90 days (Irish Central Bank)
    • Deutsche Bank believes its closer to 16%
    • 35% of mortgage arrears are “strategic non payments” (Gregory Connor, Maynooth University)

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

    You might want to consider the different reasons behind the various sovereign debt crises - Ireland had a combination of a property bubble and unsustainable governement expenditure. Greece afaik had much more of the latter and very little of the former. Therefore, you wouldn't expect to see the same mortgage arrears.
    “Still paying, still to owe. Eternal woe! ” ― Paradise Lost, John Milton

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    I'm pretty sure this graph was discussed when the article was published nearly a month ago.


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    Politics.ie Member friendlyfire's Avatar
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    What shocked me recently that house buyers are doing cash deals,this is probably going on all the country.A few weeks ago a guy from work went to buy a house and was told that someone had bid €150,000 cash so that was that..... game over.

    Now we are told we are bust, no wealth left....this is bulls*it the golden circles have reappeared!
    Stupidity is far more fascinating than intelligence, after all intelligence has it's limits.

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