Buy to Let Arrears - strategic defaulters

superman28

I think it's quite shocking the number of buy to let properties that are in long term arrears..

Surely a huge proportion of these properties are in Dublin and have high rent and low tracker mortgages? The numbers are staggering,, 39,669 BTL properties don't pay their mortgage. Yet many I'm sure pocket the rent no questions asked. With a housing crisis in full swing in Dublin it is amazing that there continues to be practically no repossessions of the BTLs in arrears.

The housing market is rigged and 25% annual price increases (in Dublin) are nonsense when you have such distortion in the market.

Why are the government controlled banks not acting on this?

http://www.irishtimes.com/business/economy/mortgage-arrears-in-buy-to-let-sector-increase-despite-rising-rents-1.1915171

comongethappy

superman28 wrote: »

I think it's quite shocking the number of buy to let properties that are in long term arrears..

Surely a huge proportion of these properties are in Dublin and have high rent and low tracker mortgages? The numbers are staggering,, 39,669 BTL properties don't pay their mortgage. Yet many I'm sure pocket the rent no questions asked. With a housing crisis in full swing in Dublin it is amazing that there continues to be practically no repossessions of the BTLs in arrears.

The housing market is rigged and 25% annual price increases (in Dublin) are nonsense when you have such distortion in the market.

Why are the government controlled banks not acting on this?

http://www.irishtimes.com/business/economy/mortgage-arrears-in-buy-to-let-sector-increase-despite-rising-rents-1.1915171

Due to political pressure the government put moritoiums/delays on repossessions.

Opposition parties shrieked in horror at the thought of properties being repossessed.

In my work I have seen a landlord paying €1 per month into his mortgage account to inhibit action.
'He made every attempt to pay monthly your honour!'

AlekSmart

Another good reason for NAMA to get the finger out and the "Professional Landlords" In !

http://www.independent.ie/business/irish/nama-sells-800-apartments-in-dublin-for-211m-30546629.html

I would suggest that a substantial (majority) of these 36,000 distressed BTL mortgages are to individual,"bit of a nest-egg for retirement","sure,ye can't lose with property" Landlords.

This,almost "Traditionally Irish" group,need to be shaken and rearranged to allow the better one's to survive and flourish.

The remainder,those mentioned in comeongethappy's post,need to be persuaded to leave the sector asap thereby facilitating more Higher Quality Corporate Landlords to set about fixing (With State Aid,if deemed necessary) the crappy mess we currently have.

mr_seer

Lunacy of the highest order. Non performing BTL's should be repoed once they officially enter default - ie 90 days in arrears. The court system should have a fast track mechanism to deal with the enormous volumes. The government do not want this however as they are the ones who have deliberately and cynically inflated the current Dublin housing bubble

chopper6

The reason the banks are not currently moving against these ıdıots ıs because they're waıtıng on house prıces to rıse.. Wıth the connıvance of the govt and the other vested ınterests. The amateur landords wıll get a rude awakenıng very soon and good enough for them

chopper6

The reason the banks are not currently moving against these ıdıots ıs because they're waıtıng on house prıces to rıse.. Wıth the connıvance of the govt and the other vested ınterests. The amateur landords wıll get a rude awakenıng very soon and good enough for them

chopper6

The reason the banks are not currently moving against these ıdıots ıs because they're waıtıng on house prıces to rıse.. Wıth the connıvance of the govt and the other vested ınterests. The amateur landords wıll get a rude awakenıng very soon and good enough for them

chopper6

The reason the banks are not currently moving against these ıdıots ıs because they're waıtıng on house prıces to rıse.. Wıth the connıvance of the govt and the other vested ınterests. The amateur landords wıll get a rude awakenıng very soon and good enough for them

Atlantic Dawn

The last thing the banks or government want is any increase of supply in the market, if this were to occur the prices would plummet as there's not enough money in the market for such purchases. The big problem will be in a couple of years time when these houses will have to be sold and there will be no market for them and the banks get in even more debt, Property Crash MKII.

gaius c

Great and good of Irish society are up to their eyeballs in debt. You only need to look at the media and some of the "personalities" and their positions to see why there's never any decent coverage of the shenanigans going on in the background.

Gerry Ryan had problems with debt and was pimping developments.
Pat Kenny paid huge money for some high profile investment including penthouse apartments in swanky hotels and you really see it with the soft ride he gives the "where's our nama?" brigade.
Brendan O'Connor was fretting about his negative equity when he wrote his infamous "smart and ballsy" article.
Conor Pope thinks it's impossible to survive on less than €100k.

You're not going to get decent coverage out of a crew who are completely embedded in the problem themselves.

carpejugulum

Atlantic Dawn wrote: »

The last thing the banks or government want is any increase of supply in the market, if this were to occur the prices would plummet as there's not enough money in the market for such purchases. The big problem will be in a couple of years time when these houses will have to be sold and there will be no market for them and the banks get in even more debt, Property Crash MKII.

But if these landlords are pocketing rents, there isn't going to be an increase in supply, is there.
So the reasons is the usual mix or laziness of the civil service and protection of certain professional classes, who fancied themselves clever investors.