The Repossession Moratorium

eman66

I was reading another thread (last post February) discussing the likelihood of a repossession moratorium being introduced as a requirement of the bank bailout. The newest info I found on Google was an Irish Times article from around the same time, again this was saying that a moratorium was likely. I did come across reports of repossessions taking place.

If it is in place, when did it start and when does it expire? Would it's expiration have an effect on house prices and to what extent?

D3PO

eman66 wrote: »

I was reading another thread (last post February) discussing the likelihood of a repossession moratorium being introduced as a requirement of the bank bailout. The newest info I found on Google was an Irish Times article from around the same time, again this was saying that a moratorium was likely. I did come across reports of repossessions taking place.

If it is in place, when did it start and when does it expire? Would it's expiration have an effect on house prices and to what extent?

yes it is in place 12 months for the 6 main banks and i believe they are enforcing 6 months on the other lenders.

in terms of an effect on house prices its unlikely to have any. Just check the detail on the number of reposessions that have taken place. Even with the increse its tiny. I read something last week that of the 96 reposession orders granted by the high court recently the lenders have only actually taken back ownership of 18 of the properties having worked out structured deals on the others despite getting the repo orders.

eman66

Thanks. When did it come into effect? Would there not be a dramatic increase in repossession orders when the moratorium expires and a subsequent correlating increase in the number of actual repossessions? And would this not have at least some effect on prices?

gurramok

Those were the cases from '07 and before that i believe?

The recent difficulties of the last year of growing unemployment have not hit the courts yet for obvious reasons as stated by D3PO so you just have to wait for the avalanche to appear.

D3PO

eman66 wrote: »

Thanks. When did it come into effect? Would there not be a dramatic increase in repossession orders when the moratorium expires and a subsequent correlating increase in the number of actual repossessions? And would this not have at least some effect on prices?

too lazy to check when it came

as with everythin yes its likely to have some effect but it will be small. the numbe rof repos before the moratorium was relatively low anyway so its not like there will be thousands of repos immediatly anyway

gurramok

eman66 wrote: »

Thanks. When did it come into effect? Would there not be a dramatic increase in repossession orders when the moratorium expires and a subsequent correlating increase in the number of actual repossessions? And would this not have at least some effect on prices?

Here are the key bits: http://www.irishtimes.com/newspaper/ireland/2009/0623/1224249339958.html

THE ANTICIPATED “avalanche” of home repossessions has not started yet, the master of the High Court Edmund Honohan has warned, as the number of orders granted by the High Court continued yesterday at record level for 2009.

He said the number of repossession cases was increasing weekly and, because a moratorium was currently in place, the worst was yet to come.

Mr Honohan said the majority of cases related to mortgages which had been taken out in 2007 and as a result, there would be an “avalanche” of new cases “come next October”.

In February of this year, he warned of a dramatic rise in repossession court cases, saying few cases so far were related to job loss.

He warned that the cases would continue to rise unless “they go to the Circuit Court or houses start to sell”.