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Posts tagged ‘Mortgages’

Noonan to use Anglo promissory notes to deflect focus from Anglo bonds.

By Namawinelake

When Professor Morgan Kelly re-ignited the debate about debt forgiveness on 18th August, 2011 something strange happened in the aftermath. Out of nowhere came the announcement of a report being produced by a “mortgage expert group” by the end of September 2011. No-one seems to have previously heard of this group though the group’s title was practically the same as another group which had produced a report in 2010. But that 2010 group had done its job, delivered its recommendations and disbanded. This new “mortgage expert group” seems to have mushroomed up overnight and if you were cynical you might say it was a knee-jerk response to headlines on debt-forgiveness, and that the “end of September” report was an attempt to deflect focus away from politicianswho were, after all, still on the beach with their spades and buckets. Cynicism was only increased by the Government failing to give even the most sketchy of details about the work of the new group – its members and expertise, terms of reference, deliverables

full article at source: http://namawinelake.wordpress.com/2011/09/17/noonan-to-use-anglo-promissory-notes-to-deflect-focus-from-anglo-bonds-confused-maybe-that%e2%80%99s-the-idea/

These figures are not telling the real story!

Central Bank figures published today show 55,763 home loans, or 7.2 per cent of all mortgages, were in arrears for more than 90 days at the end of June.

Central Bank figures published today show 55,763 home loans, or 7.2 per cent of all mortgages, were in arrears for more than 90 days at the end of June.

This compares to an arrears level of 6.3 per cent three months ago, and 5.7 per cent at the end of last year.

At the end of June there were 777,321 private residential mortgage accounts held in the Republic of Ireland to a value of €115 billion.

According to the Central Bank, 69,837 residential mortgages were categorised as restructured at the end of June. This compares with 62,936 restructured accounts at the end of March. Of this total 39,395 are not in arrears.

Between April and June mortgage lenders applied to commence proceedings to enforce the debt/security on a mortgage in 209 cases comprising arrears totalling €7.2 million built up on loans equating to €60.2 million.

Chief executive of the Irish Brokers Association Ciaran Phelan said banks are starting to understand that restructuring was the “only real solution”.

“According to these numbers, over 4,000 mortgages in arrears were restructured during the quarter; this number needs to rise significantly if we’re to slow the growing level of arrears – there were 6,000 new households in arrears in the quarter,” he said.

The Government is considering establishing a new agency with legal powers to enforce debt restructuring agreements between banks and struggling home owners. The Cabinet is awaiting a report from an expert group due by the end of next month.

One measure now under consideration is converting the Money Advice and Budgeting Service (Mabs) into a personal debt management agency, which would be given “quasi-judicial status” to enable it to “support families who make an honest effort to deal with their debts, including non-mortgage debt”.

These new legal powers would enable such an agency to require banks to achieve a resolution in these cases. Mabs spokesman Michael Culloty said today that about half of its clients came seeking mortgage advice.

Mr Culloty said that distressed mortgages remained a “growing problem”.




Mortgage arrears will remain a problem and I expect it to be endemic by the end of the first quarter of next year. With Christmas out of the way and new debts added to the old ones, I believe people will have had enough! While our gutless politicians tinker around with the very real problems of homeowners debts it will be impossible to sell the concept that citizens must continue to bail out developers in NAMA and continue to pay them 200,000 Euros ,while at the same the ordinary Joe have to endure a lifetime of debt .The Banks were just as much responsible for pumping up prices of shoeboxes  and they must have known that the chickenswould come home to roust some time !

The Financial regulator abandoned his Responsibility to regulate the financial industry allowing them to become gambling hubs, accountability was nonexistent and political interference in the property market allowed and felicitated the exploitation of gullible citizens .The printed press heavyweights  all enjoyed hefty profits advertising these overpriced future slums to the masses. Now they are supporting the gutless politicians in keeping the masses in financial slavery.

People of Ireland stand up and cast off this yoke from around our collative neck!

Mortgage defaults in Ireland (Options)

Mortgage defaults: cut a deal with lender, or just cut and run?

Homeowners have a few choices for coping with debt in Ireland

Officially, 35,000 households are in mortgage arrears in the lowest base rate environment in Irish history. This doesn’t include the people who have had to start paying their loans on an interest-only basis, nor does it count the shadow arrears cases manifesting in fewer than 90 days’ delinquent figures, and it doesn’t show those who are surviving by going through their savings. It also fails to include figures from local authority loans.

The Irish solution so far has been to put the problem off; indeed it was only in 2010 that we acknowledged the scale of the issue by formally creating the expert group on mortgage arrears.

The defaults are not due to banks increasing their margins: most existed before the current non-ECB rate hikes, and recent hikes will merely send more households quickly and silently over the edge.

How might homeowners face the debt wave washing over them?


Outright default would be the most ideal situation in a market economy. In any business transaction that doesn’t work out there is always a winner and a loser; somebody inevitably leaves the deal.

There, I said it. Our politicians and bankers know that the best solution for many people would be to walk away, but they are loath to admit it.

Think about it objectively. Do you stay potentially snowed under for decades to honour a deal that is clearly not in your favour? How far are you willing to go to keep paying the banks instead of being able to afford things for your family?

However, in Ireland, walking away is so punitive that you forsake almost a third of your working life (if you are in the key home-buying demographic age) to being financially ‘on the run’ if you take this option. That is an error: the lack of sensible personal bankruptcy laws in this country is a drag on any hope of economic growth.
The US economy is the world’s largest and Americans succeed not because they never fail, but because of how they fail. They fail in a way that lets them get up and try again. In Ireland, you fall hard and permanently.

Repricing your mortgage

Lenders don’t want people on tracker mortgages, and there are people who would be willing to give up their tracker or reprice it (ECB+2.3% instead of 1% for instance) if they got a capital reduction or a cheque in the post.

In many indebted households the mortgage is only part of the problem. It is the overall weight of debt that is breaking them. A lump sum with a slightly more expensive mortgage as a result could perhaps solve many of these ills while helping the bank solve their tracker margin dilemma.

Moving paper

This is where you sell your mortgage. Banks do it in bundles all the time (or ‘used to’ I should say) in ‘securitisations’.

If you are trying to sell a house, selling the actual mortgage with it might be a great idea; the new buyer takes on the seller’s mortgage. At least this way the seller gets a buyer faster and the lender gets a performing mortgage again.

Would a bank be willing to let a new buyer have the mortgage if they took on a portion of the arrears and/or negative equity? Would a buyer be willing to purchase that?

Short sale refinance

This is finance that could be used to refinance performing subprime loans on high interest rates over to prime lenders at regular rates, if it can be seen that it is the rate rather than the willingness and ability to pay that is the problem for the borrower.

Now that we partly own the banks, the state could demand that prime lenders at least consider these applicants rather than rejecting them outright, which they do now.

Short sales

This is where a person sells the property for less than the value of the mortgage. With the balance there is a choice: either the person carries out the difference as an unsecured loan or the bank takes the loss, or they share the pain somehow.

In the USA this is relatively common but in Ireland no bank has put forward a suggestion to engage in this, preferring the idea of forbearance. Believing that somehow, by not addressing the problem, it will eventually get better works the same way for people with gangrene as it does in banking. And time will reveal that.


Individual voluntary agreements are used in Britain for unsecured debt below £15,000. The person gets all of the creditors around a table and agrees a restructuring plan. If 75% of them agree it becomes a contract, and any that don’t agree may have to forgo their right to the debt depending on how it was worked out.

This is progressive and addresses the actual problem without any politics involved. We could easily adapt such a system here in the morning via regulated debt counsellors – except that we haven’t regulated the debt counselling industry and we are about a century behind the curve when it comes to sensible debt law.

One thing people need to realise is that they are not merely passengers on a banking ship if they get into financial difficulty. The regulator has outlined its position: it wants a process whereby people are put onto an arrears assembly line. That’s a stock government approach and solution, creative individual answers having never been a strong point.

I would advise that people in arrears make their own suggestions. The worst thing that can happen is the bank says no. And don’t be afraid to disagree with the bank’s ideas either, it has to remain a two-way relationship.

Struggling mortgage-holders need to get creative. The banks can’t suggest you give up your tracker, but you can see what they’d offer you if you did. They may or may not agree to let you sell your house for less than the value of the mortgage on it; they might even agree to selling your mortgage but they don’t have the legal aspects worked out. You won’t know until you ask.

Two thousand years ago the evangelist Matthew stated ‘ask and you shall receive’ not ‘don’t say a word and maybe things will work out’.

Whatever you do, don’t sit and hope the bank or state will come to the rescue any time soon. You’d be better off waiting for Godot.

source: http://www.ifgfinancial.ie/press/index.php?NID=720


In the US it’s different, looking at this video, There are different possibilities for you . We do need to send a message to the banks and the government .A bailout for the banks is good enough for them but for the ordinary Joe nothing? This is not good enough the banks are supposed to be partners in a risk venture and so they must be prepared to take their part of the risk. We need something other than the current system in Ireland otherwise we will see a lot of the young just take off and then the Sh** will really hit the fan. Why is it ok for Banks to default on their debts and expect me and the Irish taxpayers to pay their private debts? Yet hound homeowners and in some cases cause people to kill themselves .This must not be allowed to continue .Where is the help for the homeowners?


Gold and Silver Breakout

This article was highlighted to me this morning and might be of some interest to some of you .

By: Jim_Willie_CB

Some significant events are in progress, extremely important developments in the grand pathogenesis that reflects the deep decay and deterioration in the US financial structure. The most recent events pertaining to mortgage loans, home foreclosures, and disclosed fraud carry great potential to open extremely wide cracks in the American social order. Revealed systemic fraud is slowly coming into the open. Civil disobedience has already entered the arena of popular protest. However, the recent events surrounding illegal home foreclosure seizure of properties elevates the exposed fraud to a very clear high new level. This is a boil ready to break open, releasing financial puss

Full article source here http://www.marketoracle.co.uk/Article23276.html

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