Banks issue legal proceedings to repossess 50,000 homes

Mr.McLovin

http://www.independent.ie/business/personal-finance/banks-issue-legal-proceedings-to-repossess-50000-homes-30815793.html

Some 100,313 residential mortgage holders in default were offered a proposed solution. But 49,000 of these were issued legal letters, seeking repossession.

On the investor side, there have been close to 18,000 mortgage accounts where a threat to repossess has been issued.

Maybe there is just no more road left for the can?

jodaw

Mr.McLovin wrote: »

http://www.independent.ie/business/personal-finance/banks-issue-legal-proceedings-to-repossess-50000-homes-30815793.html



Maybe there is just no more road left for the can?

Or maybe they have pumped and pumped and now it is time for the dump?

um7y1h83ge06nx

It's gas, you see all these articles about how the property market is booming, well mainly in Dublin anyway, and on the other hand you have an article like this that makes it seem that the market will drop.

lima

Good news, but I'm sure the Govt will intervene if they think it will affect property prices

SteM

Melody Tasty Permit wrote: »

It's gas, you see all these articles about how the property market is booming, well mainly in Dublin anyway, and on the other hand you have an article like this that makes it seem that the market will drop.

I'm no expert (in anything) but surely banks would hold off on repossession if they thought they were going to be unable to sell the houses and be stuck with them? They're not in the rental business. Them must feel that there is/will be a healthy market and they'll be able to sell the houses to cover the initial loan amounts.

AfterHrsProp

Melody Tasty Permit wrote: »

It's gas, you see all these articles about how the property market is booming, well mainly in Dublin anyway, and on the other hand you have an article like this that makes it seem that the market will drop.

There both connected, people staying in properties when they clearly cant afford them & refusing to pay a mortgage is contributing to the issue of a lack of supply in the property market thus increasing prices further.

If we had repossession similar to the UK or USA in the morning, you would find supply becoming less of an issue which would in turn help cool the property market

shruikan2553

SteM wrote: »

I'm no expert (in anything) but surely banks would hold off on repossession if they thought they were going to be unable to sell the houses and be stuck with them? They're not in the rental business. Them must feel that there is/will be a healthy market and they'll be able to sell the houses to cover the initial loan amounts.

This pretty much covers it. Let the people living there maintain the property and there's a chance they might start paying again, if the bank can make its money back from selling the house then they will reposses.

Of course then you have people protesting and making it difficult to take the house because god forbid a person should live within their means.

D3PO

Melody Tasty Permit wrote: »

It's gas, you see all these articles about how the property market is booming, well mainly in Dublin anyway, and on the other hand you have an article like this that makes it seem that the market will drop.

why would you think the market would drop as a result of these articles ?

You do realize there are finite number of court hours so regardless of the amount of repossession proceedings that are issues only a certain amount can ever be processed in any given day . month, year.

you also realize that repossession doesn't obligate the bank to market the property immediately and why would they when prices are going up ? They will try and mitigate their losses as best as possible.

a larger number of repos does not equal a firesale which then drags prices down, this is a misnomer people have.

um7y1h83ge06nx

Sorry, you're right. Brain is a bit slow today! :-)

chrysagon

A good friend of mine lost her house in May... 6 months after she lost her job, the banks refused any compromise, now the house has lay vacant since May, a beautiful house going to ruin etc.. if she was let renegotiate, at least they had some money going to them..now its in need or repair, after been vandalised..typical story the country over and over..

Sala

chrysagon wrote: »

A good friend of mine lost her house in May... 6 months after she lost her job, the banks refused any compromise, now the house has lay vacant since May, a beautiful house going to ruin etc.. if she was let renegotiate, at least they had some money going to them..now its in need or repair, after been vandalised..typical story the country over and over..

Was it repossessed or did she voluntarily surrender it? 6 months from going into arrears to being repossessed is incredibly fast, in fact I wouldn't think it's even possible with MARP and then court proceedings

Lantus

so we have new regulations that require a 20% CASH payment up front for new property and suddenly all banks are now moving to en-masse seize property for re-sale after 8+ years of possible distress.

The number will need to be worked but no doubt this is a huge helping factor as it provides a huge cash influx , 50k homes at average 300k and a 60k cash deposit would realise 30million in instant real money and all the loan packages that go with it.

Given the high demand for property in Dublin and surrounding areas this is only good news for the banks as they can make money without property prices going higher by just changing the rules we all play by.

I doubt you will have anyone walking away from a house that dropped a 20% deposit on it. Conversely the bank wont have to so hesitant to repossess when so much was cash equity reducing their risk significantly.

chrysagon

Sala wrote: »

Was it repossessed or did she voluntarily surrender it? 6 months from going into arrears to being repossessed is incredibly fast, in fact I wouldn't think it's even possible with MARP and then court proceedings

They wouldnt compromise...and wouldnt give her time..

Sala

chrysagon wrote: »

They wouldnt compromise...and wouldnt give her time..

With all due respect, that doesn't answer my question. Obviously you don't have to answer, but your post suggests that she lost her job (went into arrears then?) and the house was taken from her 6 months later, which doesn't stack up. A lender must wait 8 months from classifying a case as a MARP case before writing to say they are issuing proceedings (unless someone doesn't cooperate with the lender). That is only the start - he court process is long. I don't believe it is possible to repossess a home after 6 months when it falls into arrears

Mr.McLovin

chrysagon wrote: »

A good friend of mine lost her house in May... 6 months after she lost her job, the banks refused any compromise, now the house has lay vacant since May, a beautiful house going to ruin etc.. if she was let renegotiate, at least they had some money going to them..now its in need or repair, after been vandalised..typical story the country over and over..

why do I get the feeling it was more like 6 years :rolleyes:

Sala

Mr.McLovin wrote: »

why do I get the feeling it was more like 6 years :rolleyes:

Agree. I appreciate anecdotal evidence as much as the next boardsie, especially in relation to the property market as it's very hard to get a handle on what's happening on the ground based on artciles such as that linked in the OP. But stories that couldn't possibly be true don't really lend much to discussions. Certainly chrysagon could be repeating what he/she was told, but I don't believe it could have happened like that

gaius c

chrysagon wrote: »

A good friend of mine lost her house in May... 6 months after she lost her job, the banks refused any compromise, now the house has lay vacant since May, a beautiful house going to ruin etc.. if she was let renegotiate, at least they had some money going to them..now its in need or repair, after been vandalised..typical story the country over and over..

Sorry dude but the courts are giving 6 month stays to people who don't even want their house anymore so your story isn't remotely plausible.

Ms White, who represented herself, declined Mr Justice Paul McDermott's offer of a six-month stay on eviction from the house saying she would "like nothing to do with it".

However, when one of her daughters interrupted her from the back of the court saying "mam", the judge said he was going to give the six months anyway.

tigershould

Lantus wrote: »

so we have new regulations that require a 20% CASH payment up front for new property and suddenly all banks are now moving to en-masse seize property for re-sale after 8+ years of possible distress.

The number will need to be worked but no doubt this is a huge helping factor as it provides a huge cash influx , 50k homes at average 300k and a 60k cash deposit would realise 30million in instant real money and all the loan packages that go with it.

Given the high demand for property in Dublin and surrounding areas this is only good news for the banks as they can make money without property prices going higher by just changing the rules we all play by.

I doubt you will have anyone walking away from a house that dropped a 20% deposit on it. Conversely the bank wont have to so hesitant to repossess when so much was cash equity reducing their risk significantly.

Let's not get distracted with tales of improbable repossessions. I think lantus has hit the nail on the head. I for one am sitting on 20% deposit ready to spend if only the right house became available. Bring forth the repossessions I say!

The_Morrigan

Locked pending review

The_Morrigan

Mod Note

I've deleted all the off topic posts, please stay on topic.

Shiraz 4.99 please don't post in this thread again.

Gatling

Seems to be an emotive issue ,
Personally I was surprised how many people walked away from properties so quick when things went down hill

( must read thread )

50k due to be reprocessed this year alone is significant must be a record for the state

anonyanony

Gatling wrote: »

Seems to be an emotive issue ,
Personally I was surprised how many people walked away from properties so quick when things went down hill

( must read thread )

50k due to be reprocessed this year alone is significant must be a record for the state

There was no point till now, now they can make the money back on the house it's time to take back the defaulters that could have paid but decided not to.

chrysagon

She walked away due to breakdown in negotiations with bank, thought i had said that, i wouldnt mind, she is back in employment, in a well paid career, maybe if banks had more patience and see the bigger picture.

MouseTail

chrysagon wrote: »

She walked away due to breakdown in negotiations with bank, thought i had said that, i wouldnt mind, she is back in employment, in a well paid career, maybe if banks had more patience and see the bigger picture.

In fairness, maybe if SHE had seen the bigger picture, entered MARP etc.

Sala

Lantus wrote: »

so we have new regulations that require a 20% CASH payment up front for new property and suddenly all banks are now moving to en-masse seize property for re-sale after 8+ years of possible distress.

What makes you think they are moving en masse now? I got the impression from that article that that is simply 49k owners received the letter that offers voluntary sale/ surrender/ repossession, and if I remember correctly this was in the new many months ago, when the banks had to meet some deadline for offering solutions and there was uproar they were counting this as a "solution". Anyway, the Q3 2014 CB press release says that:

During the third quarter of 2014, legal proceedings were issued to enforce the debt/security on a PDH mortgage in 2,514 cases. Court proceedings concluded in 712 cases during the quarter, and in 289 of these cases the Courts granted an order for repossession or sale of the property. There were 1,274 properties in the banks’ possession at the beginning of the quarter. A total of 302 properties were taken into possession by lenders during the quarter, of which 47 were repossessed on foot of a Court Order, while the remaining 255 were voluntarily surrendered or abandoned. During the quarter 169 properties were disposed of. The number of properties in possession at the end of the quarter was also impacted by reclassification issues affecting 14 PDH accounts. These issues include the reclassification of PDH accounts as BTL accounts, as well as timing issues regarding the disposal of a small number of PDH properties. As a result, lenders were in possession of 1,393 PDH properties at end-September 2014.

Obvioulsy this is on Principal dwellings so I assume not buy to lets... at that rate (302 per quarter) there is no chance of close to 50k properties being dumped on the market at the same time