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Are banks going to get tougher on "buy to let" mortgages in distress?

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  • 24-01-2013 11:24am
    #1
    worded
    Registered Users Posts: 4,579 ✭✭✭


    Ive heard the banks suspect some landlords are pocketing the rent and not paying the mortgage.

    Are eviction laws going to be changed to distinguish between home properties and investment properties?

    I heard that eviction % for Ireland versus the rest of the world is very low.


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    #2
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    I think there,s a problem with the law makes it hard to evict someone
    , if mortgage was taken out after a certain date,There,s articles in papers ,saying banks want the law changed to make it easier to go for eviction.
    I presume banks will go first for btls evictions, because its not family home, its a financial investment ,IE a judge is more likely to agree to bank taking house back.
    ITS hard to predict the banks actions, as there,s 1000,s of people in negative equity, who are not paying the full mortgage every month.
    WE had always had a low rate of evictions in this country compared to the usa,or the uk.
    In the usa, lots of foreclosures in an area ,tend to lower the house price , In that area.Also most irish banks are 90 per cent owned by the government ,so that may make them more cautious re widespread evictions.


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    #3
    Rereggie Perrin
    Closed Accounts Posts: 92 ✭✭Rereggie Perrin


    riclad wrote: »
    I presume banks will go first for btls evictions, because its not family home
    BTLs are family homes just like owner-occupied properties are. It's just that nobody cares if renters get booted out for not paying their rent - for some reason it is regarded as completely different to not paying your mortgage. :confused:


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    #4
    srsly78
    Registered Users Posts: 7,157 ✭✭✭srsly78


    Rereggie Perrin wrote: »
    BTLs are family homes just like owner-occupied properties are. It's just that nobody cares if renters get booted out for not paying their rent - for some reason it is regarded as completely different to not paying your mortgage. :confused:

    Places are often sold with "sitting tenants". It is entirely possible for a bank to repossess a BTL house without evicting renting tenants.


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    #5
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    IF The government wants to, they could bring in new laws to make it easier for banks to get evictions on btl or standard mortgages .They maybe more
    concerned with bringing in new rules re personal bankruptcy first ,as most
    debts are owed to banks , in the form of mortgages .


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    #6
    Rereggie Perrin
    Closed Accounts Posts: 92 ✭✭Rereggie Perrin


    srsly78 wrote: »
    Places are often sold with "sitting tenants". It is entirely possible for a bank to repossess a BTL house without evicting renting tenants.
    Yes, I'm well aware of that. Riclad was discussing evictions, not repossessions.


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    #7
    Tow
    Registered Users Posts: 7,436 ✭✭✭Tow


    In cases where the landlords are pocketing rent the banks are putting in Rent Receivers, who collect the rent directly from the tennant.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



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    #8
    Villa05
    Registered Users Posts: 4,613 ✭✭✭Villa05


    IMF and the central bank are making making noises on btl and oo mortgages. They want the law changed to make reposessions easier


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    #9
    RATM
    Closed Accounts Posts: 3,591 ✭✭✭RATM


    Tow wrote: »
    In cases where the landlords are pocketing rent the banks are putting in Rent Receivers, who collect the rent directly from the tennant.

    I've heard of this too. Some agents around Dublin are making a killing working for the banks managing and collecting rents on entire blocks.

    There are some 25% of BTL mortgages in serious arrears so my guess is most of them aren't paying a red cent. It's a huge number for the banks to get a grip with.


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    #10
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    It isn't that it's too difficult to repossess properties. It's that the banks don't want to.
    What are they going to do with thousands of repossessed BTL apartments?


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    #11
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    gaius c wrote: »
    It isn't that it's too difficult to repossess properties. It's that the banks don't want to.
    What are they going to do with thousands of repossessed BTL apartments?
    exactly, and why would they when they are generating a nice income stream for them as per above posts. A lot already have judgement orders against them anyway.


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    #12
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    The Troika have hinted that more action needs to be taken on BTL's.
    http://blogs.myhome.ie/2012/12/13/buy-to-let-investors-could-have-homes-repossessed-when-legal-loophole-is-removed/
    myhome wrote:
    Tens of thousands of buy-to-let landlords will be first in the firing line when the Government removes a legal loophole which has stopped banks repossessing properties.

    Some 37,000 people who own buy-to-let homes and have a mortgage, as well as some of the 11,000 people who have restructured their loans, are likely to be affected.

    Tanaiste Eamon Gilmore said today that the legislation would be changed in the first half of next year.

    Until now, these landlords have been protected by a High Court ruling last year that effectively made it impossible to repossess their homes.

    The Government has promised the Troika it will remove the legal impediment by March.

    And the above needs the Personal Insolvency Bill enacted first which is dealing with debts between 20k and 3m, this will affect the banks balance sheets.


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    #13
    Villa05
    Registered Users Posts: 4,613 ✭✭✭Villa05


    gaius c wrote: »
    It isn't that it's too difficult to repossess properties. It's that the banks don't want to.
    What are they going to do with thousands of repossessed BTL apartments?

    The IMF don't like this business of kicking the can down the road and they have raised specific concerns regarding costs in the Irish economy. One of the largest costs is rent and I feel they will want action on BTL's

    Irrespective of BTL's there is a significant number of Owner Occupied mortgages 6 months or more in arrears. The banks are not receiving an income stream from these properties and I think these will be the first to see repossession action. In particular there are 19,541 Owner occupied mortgages in arrears of 2 years or more, these are beyond resolution other than repossession.

    You can only hold back the flood for so long, the pressure is increasing by the month
    The arrears situation continues to deteriorate. There is some useful new information in this release. On owner-occupier loans a further breakdown is given of loans that are more than 180 days in arrears. This is the number of accounts in each sub-category:

    In arrears 181 to 360 days: 23,035
    In arrears 361 to 720 days: 24,825
    In arrears over 720 days: 19,541
    tick tock
    http://www.irisheconomy.ie/index.php/2012/12/13/mortgage-arrears-statistics/


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    #14
    worded
    Registered Users Posts: 4,579 ✭✭✭worded


    AIB is preparing to outsource the management of €13bn worth of its residential mortgage book

    - PR move IMO.

    http://www.independent.ie/business/irish/aib-ready-to-outsource-13bn-home-loan-book-3367787.html


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