Legal cases to repossess homes fall by half in two years

[Brendan Burgess]

A good article by Charlie Weston in today's Indo.

Legal cases to repossess homes fall by half in two years


The number of legal proceedings issued by banks to repossess homes has halved in the past two years.

A total of 3,665 proceedings were issued across the country last year, new figures from the Courts Service show.

...
There was a 20pc fall in the past year in the number of repossession orders granted for family homes compared with the previous year. In contrast, there are around 33,400 residential mortgage accounts in arrears for more than two years.

...

"The figures show a huge drop in proceedings issued. There was never a tsunami. There was not even a high tide. And the tide is quickly receding," Mr Burgess said.

This was in reference to repeated warnings over the past few years from mortgage debt campaigner David Hall that a 'tsunami' of repossessions are on the way.

...
Mr Hall, of the Irish Mortgage Holders Organisation, defended his claims that there would be a tsunami of repossessions. He said the Central Bank-mandated tracker mortgage investigation had forced banks to delay issuing proceedings until it was complete.

 

[Bronte]

I found this bit intereresting:

In the past few days, ratings agency Standard & Poor's warned the toxic residential mortgage books of the Irish banks continued to pose a threat to the economy.
This is despite a recent surge in house prices.
In a report, Standard & Poor's detailed the obstacles still facing lenders as they attempt to reduce the volume of non-performing loans weighing on the balance sheet.
While the agency predicted banks will accelerate efforts to clean up impaired mortgages on the back of a more restrictive regulatory environment, it argued Ireland's "slow judicial system, which tends to discourage foreclosure", presents an impediment to a speedy resolution.

I had thought with people paying down debt and with the passage of time, plus rising house prices that the banks balance sheets would be looking good but apparently not so. And it sounds like this will continue for many years yet.

 

[demoivre]

He said the Central Bank-mandated tracker mortgage investigation had forced banks to delay issuing proceedings until it was complete.

I'd be interested to know if this is actually the case. It certainly should be ! I'm aware of some cases before the courts at the moment, where the borrowers are included in the CB tracker review, but the banks are still pressing ahead.

 

[Sarenco]

From the Central Bank's "PRINCIPLES FOR LENDERS WHEN TRACKER MORTGAGE RELATED ISSUES IDENTIFIED FOR REDRESS (PRINCIPLES FOR REDRESS)":

"Before the lender takes any steps against customers that it has not previously identified as being affected by the potential relevant issue that may result in such customers losing possession of their properties (for example by commencing or advancing legal proceedings to take possession of the properties), or before the lender facilitates such customers in the sale of their properties (for example by way of assisted voluntary sale), the lender is to satisfy itself that such customers are not affected by the potential relevant issue or any other relevant issue. The lender to put appropriate systems in place regarding the process by which it satisfies itself in this regard. As part of the process, senior management to be satisfied that such customers are not affected by the potential relevant issue or any other relevant issue."

 

[Brendan Burgess]

Guys, this was a complete red herring from David Hall.

14,000 legal proceedings were issued in 2015 and 2016 out of a total of 600,000 mortgages so a rate of around 2%. So if there are 20,000 tracker mortgages under review and this has stopped legal proceedings being issued, it is about 400.

It does not account for the drop from 8,164 to 3,650.

Brendan

 

[Sarenco]

Guys, this was a complete red herring from David Hall.

Agreed.

The Central Bank document referenced above has been in place since 2015 - this is not new.

Here's a link to a note on the S&P report referenced by Bronte above. The ongoing delay in resolving NPLs is completely out of line with international norms.

http://www.independent.ie/business/...onomy-and-weigh-on-bank-profits-35597641.html

 

[Bronte]

Guys, this was a complete red herring from David Hall.

14,000 legal proceedings were issued in 2015 and 2016 out of a total of 600,000 mortgages so a rate of around 2%. So if there are 20,000 tracker mortgages under review and this has stopped legal proceedings being issued, it is about 400.

It does not account for the drop from 8,164 to 3,650.

I think it's a lot more than a red herring. He knows the figures very well as he claims to be a champion of the little guy. One would have expected better.

 

[Bronte]

- David Hall on Newstalk fighting with Seamus Coffey about the repossession figures
- Coffey says there is no evidence of a tsunami of 20k repossessions
- coffee says Hall is throwing in figures from everywhere, but it's not the true figure of repossessions
- Coffey says he's been to court forty times and seen thousands of cases

They ran out if time!

Apparently they were both on because they both had a Twitter spat yesterday

 

[Brendan Burgess]

- Coffee says he's been to court forty times and seen thousands of cases

Just to clarify -Séamus has watched thousands of cases being heard and has seen few repossession orders being actually granted.

Brendan

 

[Bronte]

Yes BB that is what he said, I was typing while listening so sorry if that wasn't clear, the fight between the two men is because Coffee says there is no tsunami of repossessions while Hall was all over the shop trying to confuse the listeners. Upshot would be if you listened you wouldn't know who was telling the truth. That's the problem.

Not sure if this is the Twitter thing

https://mobile.twitter.com/seamuscoffey/status/611930132538880001

 

[Brendan Burgess]

 

[Sarenco]

"We apologise for any stress caused by repeated false alarms".

 

[Bronte]

http://www.independent.ie/business/...defaulters-were-right-all-along-35621383.html

Not sure if it's just me but I find this article all over the shop.

There was a 20pc fall in the past year in the number of repossession orders granted for family homes compared with the previous year. In contrast, around 33,400 residential mortgage accounts are in arrears for more than two years. Consumer advocate Brendan Burgess, of the Askaboutmoney.com website, said this meant that last year someone who was more than two years in arrears had only a one-in-20 risk of losing their home. Can you imagine renters lasting two months let alone two years if they defaulted on their rent?