House reposessions

tsoparno

all this talk of debt forgivness and mortgage's but are people actually being evicted.
i'm from a town with an unemployment rate nearly double the national average and i haven't seen or heard of one repo or eviction in town or surrounding area.
anyone got any personal stories to share or have anyone witnessed these evictions.

RichardAnd

Evictions in Ireland are rare but yes, they do happen as the following article describes.

http://www.rte.ie/news/2011/0512/repossessions.html

Legally, it can take a long time to repossess a house and such orders can be appealed.

tsoparno

the numbers there are still quiet small considering the scale of the problem being portrayed in the media.
on further thought the high unemployment in my home town could be part of the reason that i've not heard of any repo's, cause there's probably a high percentage in council housing

thebman

Well according to some, it is the government trying to deal with a problem before it happens because everyone gave out that they weren't doing that before.

Personally I think the government knows the whole have a house, forget about the mortgage scheme is unworkable and will reform bankruptcy laws instead. They just have to pretend they tried the populist angle first.

Godge

Saw something yesterday that said the UK had three times the amount of repossessions per capita that we have even though they had less of a property boom.

I don't know what people are afraid of - reposession gives you a chance to start again.

The real danger is in our current failure to allow for repossessions. There is now a fear out there in the property market that there is an overhang of properties to come on the market and that prices have further to fall. In the meantime, this makes people who can do so afraid to buy and as a result property prices fall. The property market is a mess because of the hesitation on repossessions and nobody knows what fair value is.

Black Swan

MOD COMMENT:
Posters interested and informed about real estate property may have the answers you seek in this thread. This thread is being moved to Accommodation and Property, and will be evaluated by that forum's mods for appropriateness.

Victor

tsoparno wrote: »

i haven't seen or heard

Its not something that people would necessarily talk about. Sometimes it will be a matter of people handing over the property quietly, other times it will have gone through the courts and it simply hasn't been highlighted in the media.

However, for many other people, there is the situation of not being able to afford (all of) their mortgage. These cases will be at various stages from being a few hundred euros behind to several years, with the longer amount of time and the less willing / able the owner is to pay the closer to court. The number of cases going to court is likely to get worse long before it gets better.

tsoparno

Victor wrote: »

Its not something that people would necessarily talk about.

agreed but you know how people talk it always gets out some how.
i reckon we'll see a serious increase alright over the next year.i just find it weird with all the paper talk that we're just not seeing these repo's on the ground so to speak.

sophia25

Godge wrote: »

Saw something yesterday that said the UK had three times the amount of repossessions per capita that we have even though they had less of a property boom.

I don't know what people are afraid of - reposession gives you a chance to start again.

That's not true though. Most repossessions now do not discharge the mortgage and people are left owing thousands that they have no chance to clear. If there was non recourse borrowing here, people would be a lot happier to surrender their properties. The other thing is if the property is repossessed the govt. will pay rent allowance for them to housed elsewhere so there will be a cost to taxpayer in any case.

OMD

The bank, eventually, will do what is best for the bank. In many cases this will not be repossession. Say you have a €200K mortgage on a house valued €100k. If the bank repossesses it will make a loss of €100k plus the costs of the repossession.

If on the otherhand the bank gets you to keep making repayments (even if you are only paying 50% of your supposed payment) then the bank is still better off. Especially if the bank has even the slight possibility of getting the entire money back in the future when people get jobs again.

The caveat here if course is tracker mortgages where the bank is loosing money no matter what.

the_syco

Godge wrote: »

I don't know what people are afraid of - reposession gives you a chance to start again.

A chance to start again, with a VERY big sum of money hanging over your head. You owe €200,000 the bank repos the house and sells it for €130,000 you will now owe the bank €70,000