House repossessions 'set to soar'

take everything · 06-02-2011 11:52AM #1

OK it's from the Sindo but Irish Brokers Association say that this could happen this year (with the forebearance periods for people in arrears coming to an end).
Pretty shocking if true.
Thoughts?
http://www.independent.ie/national-news/brokers-fear-20000-home-repossession-cases-in-year-2527398.html

iPlop · 06-02-2011 11:54AM

take everything wrote: »

OK it's from the Sindo but Irish Brokers Association say that this could happen this year (with the forebearance periods for people in arrears coming to an end).
Pretty shocking if true.
Thoughts?
http://www.independent.ie/national-news/brokers-fear-20000-home-repossession-cases-in-year-2527398.html

Of course it's gonna happen when there's 1% added to the interest rate

orourkeda · 06-02-2011 11:58AM

Quick Question.

How much will this cost the state in rent allowance?

sonic85 · 06-02-2011 12:11PM

take everything wrote: »

OK it's from the Sindo but Irish Brokers Association say that this could happen this year (with the forebearance periods for people in arrears coming to an end).
Pretty shocking if true.
Thoughts?
http://www.independent.ie/national-news/brokers-fear-20000-home-repossession-cases-in-year-2527398.html

maybe some people shouldnt have built/bought houses they couldnt afford? for the people who have reasonable houses but just were unlucky and lost their jobs i feel sorry for them but the twats that went to town and spent way more than what they could afford i have absolutely no sympathy for them.

FreudianSlippers · 06-02-2011 12:12PM

I don't see it happening. Firstly there are new regulations regarding the way lenders have to approach lenders and come up with payment plans - also, there are ways to go to the ombudsman if you're not happy with the plan (Importantly: the lender has to come up with the plan - they cannot go to the Courts now and say that the borrower couldn't come up with an acceptable plan).
This also applies to cases already in the Courts system... which is big.

2 other points: Firstly, the Master of the High Court is being VERY strict on lenders and they have to have everything perfect before he sends the case off the the Judge's list. If they're not perfect he is sending them off to fix it and that's taking months... which relates to the second point - that is, the Court lists are so long at the moment that these matters that will arise this year will not be reached until mid next year IMO. Even now, relatively early in the legal term this year, cases are being adjourned into next term.

Pauleta · 06-02-2011 01:15PM

Dont get a mortgage if you are not 100% that you can pay it.

iPlop · 06-02-2011 01:18PM

Pauleta wrote: »

Dont get a mortgage if you are not 100% that you can pay it.

Ehh most people could pay it before the country went into meltdown.They're not going to be thinking "do ya know what ,im not gonna buy this house cos there might be a recession in ten years"

06-02-2011 01:21PM

It depends on whether the properties to be reposessed are family homes or in most cases speculative rentals/flippers.

Repossing family homes mean that people become homeless, with all the problems that entail. Repossessing speculative acquisions is less of an issue as many are empty and if rented out the tenants are given notice or the banks could take over the role as landlord.

Red Hand · 06-02-2011 01:40PM

Sink The Banana wrote: »

Ehh most people could pay it before the country went into meltdown.They're not going to be thinking "do ya know what ,im not gonna buy this house cos there might be a recession in ten years"

To be fair, recessions always occur. So, not to take into account their reality, is rather silly.

Oranage2 · 06-02-2011 01:43PM

I'll be the first to say it so:

"They can bail out the banks but who's bailing out the irish people?"

Kasabian · 06-02-2011 01:44PM

Jeremiah 16:1 wrote: »

To be fair, recessions always occur. So, not to take into account their reality, is rather silly.

You must be great craic to plan a holiday with :pac:

06-02-2011 01:45PM

Jeremiah 16:1 wrote: »

To be fair, recessions always occur. So, not to take into account their reality, is rather silly.

There was a time when the banks used to do this before dishing out mortgages, but during the crazy times 1998-2006 they gave them out like sweets!

Red Hand · 06-02-2011 01:46PM

Kasabian wrote: »

You must be great craic to plan a holiday with :pac:

Where are you thinking of going?

4zn76tysfajdxp · 06-02-2011 01:47PM

Oranage2 wrote: »

I'll be the first to say it so:

"They can bail out the banks but who's bailing out the irish people?"

Germans?

Red Hand · 06-02-2011 01:49PM

Deleted User wrote: »

There was a time when the banks used to do this before dishing out mortgages, but during the crazy times 1998-2006 they gave them out like sweets!

Shouldn't take sweets/loans from strangers, or you/your home might be carried off by a repossessophile.:pac::pac:

Kasabian · 06-02-2011 01:49PM

Jeremiah 16:1 wrote: »

Where are you thinking of going?

Egypt.

06-02-2011 01:49PM

Jordy Quick Milkman wrote: »

Germans?

No, the Chinese! (A great bunch of lads)

physioman · 06-02-2011 01:53PM

I'd have to agree with sonic85. People blame the banks for handing out the mortgages but people had the choice whether to get a mortgage or not. I don't have much pity on people who took out mortgages beyond their means. They mustn't have realised that they had to pay them off over 20 years!

Red Hand · 06-02-2011 01:53PM

Kasabian wrote: »

Egypt.

I won't be a downer, so....great choice!

Atlantic Dawn · 06-02-2011 01:54PM

There will only be a tiny amount of repossessions in the coming year, perhaps 100 and these will be basket cases. Even with people tens of thousands in default, the last thing the banks or the government want is for any panic selling of homes at reduced prices.

Kasabian · 06-02-2011 01:55PM

Jeremiah 16:1 wrote: »

I won't be a downer, so....great choice!

I thought the mood would make you comfortable.

Red Hand · 06-02-2011 01:59PM

Kasabian wrote: »

I thought the mood would make you comfortable.

Yes. Very.

You know what? You were right. Planning this holiday is great craic.

:pac:

El Siglo · 06-02-2011 02:00PM

Bad form if they start repossessing homes off people. There's a quote from JFK which kind of springs to mind; "If a free society cannot help the many who are poor, it cannot save the few who are rich."

RoyalMarine · 06-02-2011 02:00PM

a lot of people were able to pay mortages when they took them out.

then the recession hit.

The minimum wage went DOWN.
200,000+ people lost their jobs.

mortgage rates went UP.
the price in health care went UP.
the price in home heating went UP.
the price in petrol/deisel went UP.
the price of food went UP.
the price of bills such as sky, upc, ESB, gas went UP.

so, how can someone who has a steady job say in 2004 earning decent money, wife out working earning decent money with 2 kids both in school.
everything going fine for them.

now, fast forward 6 years to last year.

recession hits.

wife lost job.
both kids now in college. however, due to the useless system for grants, neither are elligable.
husband wage decrease in order to keep his job.

cost of EVERYTHING goes up.

now, 1% mortgage increase.

earnings dropped by 50% in a month easily.

no one can predict what will happen over the course of 20 years.

if they could, then they would be richer than anyone else in the world.

Kersh · 06-02-2011 02:04PM

panic selling of homes at reduced prices.

This is exactly what Im waiting for.

danbohan · 06-02-2011 02:05PM

RoyalMarine wrote: »

a lot of people were able to pay mortages when they took them out.

then the recession hit.

The minimum wage went DOWN.
200,000+ people lost their jobs.

mortgage rates went UP.
the price in health care went UP.
the price in home heating went UP.
the price in petrol/deisel went UP.
the price of food went UP.
the price of bills such as sky, upc, ESB, gas went UP.

so, how can someone who has a steady job say in 2004 earning decent money, wife out working earning decent money with 2 kids both in school.
everything going fine for them.

now, fast forward 6 years to last year.

recession hits.

wife lost job.
both kids now in college. however, due to the useless system for grants, neither are elligable.
husband wage decrease in order to keep his job.

cost of EVERYTHING goes up.

now, 1% mortgage increase.

earnings dropped by 50% in a month easily.

no one can predict what will happen over the course of 20 years.

if they could, then they would be richer than anyone else in the world.

so your telling me that somebody taking out their mortgage in 2004 would have thought that interest rates would remain at 2% -4% for next 20 to 30 years , and that their income could only go up ?

i thought this was supposed to be our brightest and best educated generation ? appears to be the opposite

Red Hand · 06-02-2011 02:07PM

danbohan wrote: »

so your telling me that somebody taking out their mortgage in 2004 would have thought that interest rates would remain at 2% -4% for next 20 to 30 years , and that they income could only go up ?

i thought this was supposed to be our brightest and best educated generation ? appears to be the opposite

Recessions never occur in the space of a 30 year period.

wolfpawnat · 06-02-2011 02:10PM

It's all well and good repo-ing them, but they won't want to. There are houses for sale left, right and centre as it is. What do they think they will do with them all? They would be better served being realistic and trying to sort something with the borrowers!

06-02-2011 02:13PM

danbohan wrote: »

so your telling me that somebody taking out their mortgage in 2004 would have thought that interest rates would remain at 2% -4% for next 20 to 30 years , and that they income could only go up ?

i thought this was supposed to be our brightest and best educated generation ? appears to be the opposite

Because our "educators" don't teach economics to everyone, many are simply blind to these obvious facts and rely on the professionals at the banks to help them!

Most people of a certain age could see the warning signs, they've already experienced a recession (yep! been there, done that,bought the Tshirt), as we were not professionals, our warnings fell on deaf ears!

Once house prices got above 4x the average salary of the buyers, the alarm bells started to ring.

poppyvalley · 06-02-2011 02:13PM

:D:D

Kasabian wrote: »

Egypt.

LoLYou got him

Mike 1972 · 06-02-2011 02:17PM

Deleted User wrote: »

Repossing family homes mean that people become homeless.

Not necessairly.

It usually means that instead of living in a place owned by a bank they end up living in a place owned by a landlord (or the state). May not be a very pleasent prospect but hardly comparable with actual homelessness.

Oh and whats this big gawdamn hangup about family homes ? Dont single people (and childless/childfree couples) need somewhere to live too.

m5ex9oqjawdg2i · 06-02-2011 02:22PM

Thoughts?

It's absolute bull****...

These scaremongering fcuktards translate the following "20000 people will find it even more difficult to pay their mortgage each month"

To:

"20000 people are going to be homeless"

Making it a definite assumption, which is a load of bollix...

It's what the media do best, talk shíte.

I can guarantee you now that this will not happen.

mickydoomsux · 06-02-2011 02:28PM

danbohan wrote: »

so your telling me that somebody taking out their mortgage in 2004 would have thought that interest rates would remain at 2% -4% for next 20 to 30 years , and that their income could only go up ?

i thought this was supposed to be our brightest and best educated generation ? appears to be the opposite

A lot of people of this generation seemed to think that paying €250,000+ for a ****box, thrown-together house in a field somewhere in the Westmeath commuter hell was a great idea.

Surely their job with a huge migratory multinational would still be there in 10 years time in a country with unprecendented spiralling inflation and an ever increasing cost of doing business!

cursai · 06-02-2011 02:36PM

I still don't understand the mentality of people.
Paying out huge sums for a box with heating and windows!
They knew there was a risk!
.....
now they complain when that risk becomes a reality!!!!!:mad:

Just sell the house for what you can get and pay the rest off over the next few yrs. The pride and arrogance in all of it is shameful!!!!!!!
Now the rest of us who were sensible have to watch the whole country thing to fall apart!!!!!!

Coriolanus · 06-02-2011 02:37PM

You'll have to excuse my ignorance but what happens if it's a family home?

Do the people just get turfed out or can it only happen when and if there's a council home available?

danbohan · 06-02-2011 02:43PM

Nevore wrote: »

You'll have to excuse my ignorance but what happens if it's a family home?

Do the people just get turfed out or can it only happen when and if there's a council home available?

http://www.youtube.com/watch?v=-0y-SWdbGRk&feature=related

situation in USA

whos to say it could not happen here , remember as morgan kelly said we are relying on the'' kindness of strangers''

06-02-2011 02:43PM

Mike 1972 wrote: »

Oh and whats this big gawdamn hangup about family homes ? Dont single people (and childless/childfree couples) need somewhere to live too.

Family as in they bought it for their own accommodation, same would be true of singles and couples. Just shorter to just type family, as opposed to "homes purchased for occupation by the purchasers".

Repossessed usually means dispossed from the house.

Mike 1972 · 06-02-2011 03:03PM

Deleted User wrote: »

Repossessed usually means dispossed from the house.

But doesnt exclude one from renting someplace else.

We need to stop thinking of repossession and homelessness being one and the same thing. It is plainly not the case.

mikom · 06-02-2011 03:05PM

MrMatisse wrote: »

Very sad. You can see the anger beginning to appear.

Very sad. You can see the shill beginning to appear.

Liam_Flag · 07-02-2011 10:17AM

Can't wait to check out some knock down prices for houses.

D Mc W reckoned that a rule of thumb should be the annual rental income from a house x 12-15 times to get a true value of a property.

House repossessions 'set to soar'

A leading housing charity fears repossessions will soar this year unless urgent Government action is taken.

Respond! Housing Association has demanded urgent changes to a mortgage welfare scheme as almost 100,000 desperate homeowners struggle to meet repayments.

Aoife Walsh, spokeswoman, said it was critical amendments be made to the Mortgage Interest Supplement (MIS) scheme, which gives short term support with interest repayments.

“The number of families struggling on a monthly basis is only set to increase during 2011 as incomes continue to fall and interest rates increase,” she said.

“The only state assistance for these homeowners is mortgage interest supplement but only 18,000 are accessing it currently, a fraction of the real number in difficulty.”

Ireland’s largest mortgage provider, permanent tsb, and Ulster Bank both announced hikes in interest rates on standard variable rate mortgages on Friday. They will hit homeowners next month.

Respond! said nearly 100,000 homeowners are already struggling with mortgage repayments, with more than 40,000 in arrears of 90 days or more.

Ms Walsh said the real concern is the 28,000 homeowners who have been unable to repay their mortgage for more than 180 days.

Respond! believes the main reason for low numbers benefited from MIS was its strict qualifying criteria.

It maintained a review of the scheme seven months ago made several recommendations that have not been implemented.

“In the meantime, the number in arrears has increased and the number of homes being repossessed continues to rise,” said Ms Walsh.

“A lot of lip service was paid to the plight of homeowners in 2010 but very little action.

“Unless more is done to assist people, we could witness large scale repossessions in 2011 and 2012.”

http://www.breakingnews.ie/ireland/house-repossessions-set-to-soar-492464.html#ixzz1DGbZF1VX

fulhamfanincork · 07-02-2011 10:19AM

Is being a Repo man the stingiest job out there?

*and its such a mans job. never see a woman being a repowoman.

Sanjuro · 07-02-2011 10:22AM

Grim. And I don't really see the point in reposession. All you end up with is empty houses and homeless families. And who's going to be able to rent the houses off the banks? Surely restructuring of debt would make far more sense. People stay in their houses, the banks or mortgage companies continue to get something (it's better than nothing), and people in debt can start to put some money back into the economy.

gurramok · 07-02-2011 10:28AM

Sanjuro wrote: »

Grim. And I don't really see the point in reposession. All you end up with is empty houses and homeless families. And who's going to be able to rent the houses off the banks? Surely restructuring of debt would make far more sense. People stay in their houses, the banks or mortgage companies continue to get something (it's better than nothing), and people in debt can start to put some money back into the economy.

Who would pay for the restructuring of the debt?

Wibbs · 07-02-2011 10:29AM

Sanjuro wrote: »

Grim. And I don't really see the point in reposession. All you end up with is empty houses and homeless families. And who's going to be able to rent the houses off the banks? Surely restructuring of debt would make far more sense. People stay in their houses, the banks or mortgage companies continue to get something (it's better than nothing), and people in debt can start to put some money back into the economy.

Yep. A tad stupid to repossess. Empty house, not being maintained in a crap housing market so cant sell and even if the bank could it would likely be a significant loss.

Plus if that amount of repos start to hit the headlines(if they ever do of course) the people might finally get up off their arse and be more open in revolt. The irish fear of eviction runs deep and with good reason.

I know a few families in mortgage arrears. I suspect there may be even more about to go wallop than the stats so far suggest(EG ones on mortgage insurance about to run out)

Mr. Presentable · 07-02-2011 10:31AM

I hate to see people lose their homes, but a lot of the time they won't make any sacrifice towards keeping them.........

Many people are not prepared to trim other costs, live within their means. My sis works in a MABS and has people every day looking for help with the ESB, the mortgage etc, who get the hump when it is suggested to them they sell the Audi.

A bank doesn't want your house, it wants your money and if you make some efforts to pay them, any efforts at all, then there is no way they can take your home. The article is scare-mongering, little else.

Sanjuro · 07-02-2011 10:35AM

There is a mortgage crisis coming. I'm no economist, that's for sure. But I know a great many people with mortgages who are in negative equity. I know they're not the entire country, but they're a snapshot of what's going on. The current situation cannot be sustained, so something has to be done about this.

When I said debt restructuring, I meant a restructuring of repayment that can be approved by both sides. There's nothing to be gained by reposession, so restructuring is the only thing that makes sense. Like I said, I'm no economist, and I'm not a financial expert by any means. But the logic in reposession just seems non-existant.

Cavehill Red · 07-02-2011 10:43AM

Mr. Presentable wrote: »

I hate to see people lose their homes, but a lot of the time they won't make any sacrifice towards keeping them.........

Many people are not prepared to trim other costs, live within their means. My sis works in a MABS and has people every day looking for help with the ESB, the mortgage etc, who get the hump when it is suggested to them they sell the Audi.

A bank doesn't want your house, it wants your money and if you make some efforts to pay them, any efforts at all, then there is no way they can take your home. The article is scare-mongering, little else.

This, with all due respect, is drivel of the highest order.
The subprime lenders have been in court every week for many months now seeking to possess houses from people, dozens at a time, many of whom are only a few months behind payment due to unemployment.
Yes, others have abandoned the property and the country, and yes, others again are years in arrears. But the fact is that the subprime lenders have been all too eager to take property in lieu of debt restructuring.
The mainstream lenders aren't quite so lethal because they're mostly constrained by the conditions attached to the various bank guarantees.
But McWilliams is right - a mortgage tsunami is coming and the banks will not blink at dispossessing families of their homes by the hundred even as we continue to plough hundreds of billions into keeping those same banks afloat.

Liam_Flag · 07-02-2011 10:44AM

Sanjuro wrote: »

Grim. And I don't really see the point in reposession. All you end up with is empty houses and homeless families. And who's going to be able to rent the houses off the banks? Surely restructuring of debt would make far more sense. People stay in their houses, the banks or mortgage companies continue to get something (it's better than nothing), and people in debt can start to put some money back into the economy.

To be fair , the only way that new first time homeowners will buy is when they see realistic prices.
Deferring the period of repossession causes stagnation in the housing market and Bubble-Type prices. People are effectively waiting for the prices to drop another 40% in some places.

arybvtcw0eolkf · 07-02-2011 10:51AM

Wibbs wrote: »

Y The irish fear of eviction runs deep and with good reason.

Just on that..

I was asked for directions Baldoyal Ind. Est recently, it was pissing out and I was going to train in a gym in the estate so I told the guy to jump in and I'd run him to the garage..

We got talking and I asked jokingly if he was going to collect his new 10 D car.. "No, the bastards got me" ... Long story short, he's lost his job, mortage appears, court, repo... And married with two small children with Christmas looming...

My stomach was sick. I couldn't imagine telling my children we were losing the house, their friends etc.

sophia25 · 07-02-2011 10:53AM

Well the banks have to be a bit more proactive. I own two rental properties with my estranged husband. He has refused me access to these properties and rents them out and receives rent of 2k per month. He has not paid a penny to the mortgage company in almost two years and they are now 45k in arrears. At the same time he is 6.5k in arrears with child maintenance. I spent a whole year phoning the mortgage company begging them to send him out arrears letters and/or to phone him. I honestly believe they don't want to do anything as they are in negative equity and if they repossess the loss will be actualised as opposed to being just an arrears case at present. I believe the banks are holding off on a lot of cases as they don't want their real state to be revealed. At this stage, despite everything, these cases haven't even been passed to a solicitor and the bank knows they are both being rented out. I wish the bank would take possssion off them and at least receive the rent instead of my indebtness raising 2k every month. Oh God, I get palpitations even thinking about it.

ntlbell · 07-02-2011 10:57AM

Sanjuro wrote: »

There is a mortgage crisis coming. I'm no economist, that's for sure. But I know a great many people with mortgages who are in negative equity. I know they're not the entire country, but they're a snapshot of what's going on. The current situation cannot be sustained, so something has to be done about this.

When I said debt restructuring, I meant a restructuring of repayment that can be approved by both sides. There's nothing to be gained by reposession, so restructuring is the only thing that makes sense. Like I said, I'm no economist, and I'm not a financial expert by any means. But the logic in reposession just seems non-existant.

In a lot of cases there is not going to be any room for re-structruing. some are out of work with no income, some are on 40yr mortgages with 100% how the hell do you restructure something like that? let them pay it off till they're 90?

you can eithier afford something or you can't. for a lot of people who bought in the last 7-10years restructing won't fix anything just prolong the inevitable.

House repossessions 'set to soar'

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