Are those in arrears who can now pay their mortgage, but not their arrears, afforded the option of a reset with the arrears folded into an extension of the term?
Did the moral hazard brigade give their blessing to NAMA when they gave a €300 million write down in the loans of the top 23 developers on their books ? Selective moral hazard anyone ?
Did the moral hazard brigade give their blessing to NAMA when they gave a €300 million write down in the loans of the top 23 developers on their books ? Selective moral hazard anyone ?
As an example if it costs us in write down k50 to keep someone in a home v cost of rehoming/housing at say societal cost of k100, then sense says do it and swallow hard!
Jim 2007, Not sure what you mean?
In Nama , I would think that in most cases pragmatic deals were done.
In Mortgages , pragmatism and what suits us should trump any Moral Hazard argument.
As an example if it costs us in write down k50 to keep someone in a home v cost of rehoming/housing at say societal cost of k100, then sense says do it and swallow hard!
..............Theo.That is based on the assumption that all/most would qualify for housing/rent allowance.I hate this being part of the reasoning because I think the reality would be different and suspect many in arrears have reasonable income.David Hall and others want to convey the idea that all/most in arrears are unemployed and on social welfare,and would go straight to rent allowance.As I say, I reckon the reality would be different.
That is based on the assumption that all/most would qualify for housing/rent allowance.I hate this being part of the reasoning because I think the reality would be different and suspect many in arrears have reasonable income.David Hall and others want to convey the idea that all/most in arrears are unemployed and on social welfare,and would go straight to rent allowance.As I say, I reckon the reality would be different.
Begrudgery is alive and well. The "moral hazard" people are akin to Marie Antoinette saying "let them eat cake". The financial crisis has left hundreds of thousands of our fellow citizens crippled financially. I didn't suffer the same fate. Do I care if the State helps people get back on their feet? No, because it's the right thing to do. Those in arrears are being painted as spoofers and it's being implied that they are milking the system. I don't see that - I see people who are probably crying themselves to sleep and wondering how they can get their families out of the holes that they're in. I see the spike in the suicide figures that nobody talks about.
Well done Gordon!!!!!!!!
I've grown weary from the same old arguments being trotted out about all of the 'strategic defaulters' out there. Every one seems to know of at least 1 person who is going on 2 holidays per year etc. whilst paying nothing towards their mortgage (as if anyone would be stupid enough to broadcast his / her 'strategy' in a country full of begrudgers) and from this specific 'example', they engage in inductive reasoning (from the specific to the general) and suggest massive numbers of our fellow citizens are at it.
They seem to conveniently ignore the reality of the financial crisis and how the crisis disproportionatley affected certain demographics of our economy e.g. constuction workers. Figures are freely manipulated to 'back up' the unfounded hypothesis of widespread strategic default. The Einstellung Effect is proven again and again.
The 'would anyone think about the SVR payers' is being cynically used as a smoke screen to attack the 'strategic defaulters'.
Unfortunately, history has taught us again and again, that people turn on each other in times of financial distress and that certain personality types thrive in identifying some 'greedy and selfish minority' (strategic defaulter) that is to somehow to 'blame'.