Repossessions of family homes should only be happening in very exceptional cases.
Repossessions of family homes should only be happening in very exceptional cases.
There are people living in very large houses which they can no longer afford, and the courts are reluctant to give an order to the lender if the borrower is paying something, although the mortgage is clearly unsustainable.
And then you have plenty of people taking a free ride - paying nothing and getting away with it for years.
Correct me if I'm wrong .
the likes of Denis O Brien's company Millington gets a €119,000,000 debt write down when they bought Siteserv.
An unsustainable mortgage can be made sustainable through a PIA. Correct me if I'm wrong but I thought that the main idea behind the Insolvency laws was to keep people in their family homes where at all possible. The big problem, as I see it , is that that there are many people out there who would hate to see Johnny and Mary get a debt write down of a €100k to make their mortgage sustainable, but there is an indifference when the likes of Denis O Brien's company Millington gets a €119,000,000 debt write down when they bought Siteserv. We need to move on.
Sorry to burst your bubble on this one Sarenco but unfortunately the majority of banks are prepared to in many cases decline reasonable proposals from customers which would peacefully resolve the arrears position to the benefit of both parties.Because I suspect lenders would rarely reject a reasonable proposal to restructure a mortgage on a sustainable basis. Why would they act in such an irrational fashion?
No this was not a stated purpose of the insolvency laws as far as I am aware and I have read the 2012/2013 Acts a number of times. the legislation was to help those with unsustainable debt including mortgage debt to reach solutions with their creditors. In many cases these solutions could include the sale of the family home.Correct me if I'm wrong but I thought that the main idea behind the Insolvency laws was to keep people in their family homes where at all possible
In my own experience in the industry I am constantly amazed at the amount of "reasonable" proposals that are declined by ASU Departments because they don't fit within the narrow box of solutions. Believe it or not banks do not encourage their arrears support staff to "think outside the box" in terms of working with clients to find an appropriate solution.
To be fair there could be a rationale for this type of mortgage. Operating similar to the Bond market a type of non repayable loan where interest is perpetually serviced with inflation ultimately reducing the real value of a loan to a fairly negligible level.Great deal for the banks though - a ready made cohort of perpetual debt slaves. Nice.
From a bank perspective I have always felt that a large element of repayable debt is wasted as no sooner is it repaid than the banks have to find alternative customers to lend that money to. Ie the banks get paid back the money only to lend it again.
Delighted to.
There are many people living in large houses which they can no longer afford who are not insolvent. They have plenty of equity in their home and can sell them. They won't qualify for a PIA.
Delighted to correct you again.
This implies that Denis O'Brien got some sort of a write-down at our expense. Siteserv was an insolvent company which could have been just put into liquidation or receivership with their 900 employees let go. The debts were written down to make it saleable.
Denis O'Brien paid the market price for it. He did not benefit from any write-down. If there had not been a write-down he would simply not have bought it and the company would have been wound up. He could probably have bought the assets cheaper from the liquidator.
That's your erroneous conclusion.
Ah, so you're saying that any unsustainable mortgage can become sustainable if somebody else picks up a sufficient amount of the tab.
Fair enough but I don't really want to pay somebody else's mortgage. Sorry.
If it's erroneous, you might correct it?
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