New scheme for people who don't qualify for Mortgage to Rent

The only 'profitable' space for these kind of solutions to long-term arrears involves:

1) convincing the government to provide housing supports
2) convincing a bank to write off a large chunk of the outstanding mortgage

Arizun haven't found any magic beans.

This is all marketing to build a client base that they can take to the banks for a bulk deal.
 
On Today Sean O'Rourke he says it's for people who don't get government support.

We are an Irish company, with Irish people trying to fix an Irish problem.

We are more like a pension fund - long term assets and long term leases

We don't do bulk buying from a bank. We do it one on one with the borrower.

We will negotiate with the bank to acquire the mortgage.

O'Rourke: "You will offer the market value of the home to the bank?"

Yes.

We offer solutions to people in long-term arrears who have no hope of clearing them.

O'Rourke: If the banks give the borrower the discount you are getting, they borrower could do it themselves?

Yes but they don't do it because of moral hazard.

The banks are under massive pressure to deal with these loans. There is no solution for these people

O'Rourke: Including Insolvency, Mortgage to Rent?

They won't qualify for MTR, because their income is too low

There are 28,000 over two years in arrears - I would say that less than 4,000 would qualify for MTR.

3,500 have applied for MTR - 300 have got it.

O'Rourke: How much rent will you charge people

The market rent wherever they are in the country.

O'Rourke: How will they buy back their home?

The tenant can buy back the house and get 40% of any uplift in the value. That will provide them with the deposit.

If you are 65, you won't be able to get a mortgage. But we will allow a family take it over. We really want the family to stay in the family home.

O'Rourke: How open are the financial institutions in dealing with you?

We have had a couple of conversations with financial institutions and they have been very positive.
 
From the press release:

Within the first 6 years of their tenancy, they have the option of repurchasing their home with a 40% share in any capital appreciation to go towards their new mortgage deposit.


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So the house has to double in value for me to have the required deposit of 20%.

And my credit record will have to be clear.

And my earnings will have to be enough to sustain a €160k mortgage

And all these must come together in the one year window opening up after my credit record is clear and the 6 year time limit on the option to buy back my house.

Brendan
 
Jim Stafford said:
Bronte, thousands of people have already availed of PIA's. Having said that, I am still baffled, in 2019, to meet clients facing severe financial difficulty that have not previously heard of Personal Insolvency Arrangements, despite all of the media attention and advertising.




Believe me, banks/funds sometimes vote against PIA's. However, the bottom line is that as long as the PIA produces a better outcome than a bankruptcy, the Courts are likely to enforce it. See case below, where the interest rate was fixed for 27 years at 3.65%. The case is a good illustration of how PIA's can be effective against creditors who object etc
Click to expand...

The PIP seems to make sense in some cases alright but the fact that your creditor(s) can vote against it isn't ideal and is there any appeal mechanism if they do please?
 
After doing some research and to answer my own question I see a person can appeal through the courts if their creditor(s) don't agree. Anyone have experience of appealing please?
 
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