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HOLA441

'Bank refused to let me sell my house. Now I have to slash price'

This one seems to have everything, even (almost) selling the house on youtube to a cash buyer.

http://www.independent.ie/national-news/bank-refused-to-let-me-sell-my-house-now-i-have-to-slash-price-2857190.html

Ms Godsil and her then husband bought the house in 1999, which was later valued at €1.6m following modernisation work.

However, when her English banker husband, declared himself bankrupt, Ms Godsil was left with the weight of the huge mortgage of €900,000 even though they both owned the eight-bedroom house.

She added: "The solicitor who did my affidavit of means refused to charge me as he could see I had nothing -- only debts.

"And then when I get a cash offer -- they (the bank) decide to refuse it and come after me instead. It's so unfair."

Edited by Shotoflight
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HOLA443

Some pressure down south for a deposit protect scheme. I think something similar up North is needed. I hate the fact with some LL (particularly in student accommodation) think that deposits are redecorating funds.

More regulation of landlords can only be seen as a good thing. North and south of the border.

http://www.irishtimes.com/newspaper/ireland/2011/0826/1224303005598.html

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HOLA445

Basically, this money just isn't going to get paid back is it.............

http://www.rte.ie/ne...9/mortgage.html

More than 55,000 mortgages are in arrears of more than 90 days, according to new figures from the Central Bank.

The Central Bank also says that 70,000 mortgages had been restructured by the end of June - and more than half of these are now performing as agreed with their lenders.

So that's another 35,000, giving a grand total of 90,000 mortgages that have collapsed. About 12% of the national stock. Add in the other 35,000 "restructured" ones (defaulting, just like Greece) then it's about 17%.

And yet Ireland has repo'd 428 homes, and last year there were 9 - nine! - bankruptcies. Fantasy land.

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HOLA446

Noonan weighs in again on mortgage debt promising help

http://www.independent.ie/business/personal-finance/property-mortgages/noonan-weighs-in-again-on-mortgage-debt-promising-help-2862039.html

Pointing out that Ireland does not have a culture of repossessions and that only 58 repossessions had been ordered by the courts to date, he said: “We want as many people as possible to retain their own homes.”

But the Minister said on Morning Ireland that there had to be a distinction between those who can’t pay and those who won’t pay.

Transport Minister Leo Varadkar said there are lots of people struggling to pay their mortgages, and are just about managing, "and they shouldn't have to pay for those who can't or won't".

He agreed with the Government stance of ruling out "blanket debt forgiveness".

Edited by Shotoflight
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HOLA447

Economist says house prices will drop even further

Market to fall 60pc from 2007 peak before bottom is reached

http://www.independent.ie/business/irish/economist-says-house-prices-will-drop-even-further-2861968.html

IRISH house prices still haven't reached the bottom and are not "cheap" at current levels,

He believes that they will have to drop to 60pc from the boomtime prices before they become "realistic". This forecast is based on an assessment of the prices that people can now afford to pay for property.

At the peak, property was being bought, on average, for as much as eight times the buyer's annual income. And while this has reduced to five times at current prices, it still looks expensive when compared with international trends.

Mr O'Leary said: "While there has been a significant correction, the international evidence would not suggest this.

There is a time lag between when Irish house price data are published and when the changes are recorded. When this is taken into account, the actual house price decline has been more severe, Mr O'Leary says. Some properties have already been sold at a 60pc discount from the boomtime peak.

Fitch delivers fresh alert to Ireland on credit rating

http://www.independent.ie/business/irish/fitch-delivers-fresh-alert-to-ireland-on-credit-rating-2861967.html

Fitch has Ireland on BBB+ rating, but with a negative outlook.

"The negative outlook primarily reflects concern at the timing and pace of economic recovery in Ireland,'' said the note.

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HOLA448

Looks like being a giant council housing estate then !!

http://www.rte.ie/news/2011/0831/mortgage.html

People facing repossession may be able to rent their homes from the State after they have lost ownership of the properties.

Consideration is also being given to measures to allow people who are already in negative equity to trade up if they can sustain a larger debt.

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HOLA449

Not news but may be of interest and also a useful source of further info.

http://trueeconomics.blogspot.com/2011/08/29082011-mortgages-arrears-2q-2011-data.html

Let me sum the above up: in 2Q 2011, the value of mortgages that were either in arrears 90days and over or were restructured and not in arrears accounted for 15.2% of the entire mortgages pool in Ireland.

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HOLA4410

Ten firms per day go bust as liquidations increase 68pc on last year

http://www.independent.ie/business/irish/ten-firms-per-day-go-bust-as-liquidations-increase-68pc-on-last-year-2863699.html

It identifies over a third of the 174 companies that went bust had "unsatisfied mortgages" or bank loans which have not been repaid. Another 31 companies went into receivership. In August, 40 construction companies, 33 retailers, 21 real estate firms and 17 companies in the hospitality industry all closed.

She estimates there were 10 staff on average in every company that closed this month. Many of the directors of these firms are not eligible for state financial assistance because they are regarded as having been self-employed.

"As for the debate on debt forgiveness, these figures suggest the number of people who have limited or reduced income regrettably looks like it is set to rise," she said.

We need more severe budget cuts in December Budget - ESRI

http://www.independent.ie/national-news/we-need-more-severe-budget-cuts-in-december-budget-esri-2863738.html

Urging the government to cut the budget deficit by more than the €3.6 billion required under the EU-IMF programme, it said the economy has bottomed out but we are still stuck in the midst of a seven-year recession that won't end until 2015.

It is important that markets see we are serious about it, Professor Joe Durkan of the Institute said today as the quarterly report suggested a €4 billion cut in December’s budget.

The country’s leading think tank also cut its forecasts once again because of the slowing world economy and the reluctance of consumers to spend.

The ESRI expects economic growth of just 0.2pc this year.

Reluctance or inability to spend?

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HOLA4411

Looks like being a giant council housing estate then !!

http://www.rte.ie/ne...1/mortgage.html

People facing repossession may be able to rent their homes from the State after they have lost ownership of the properties.

Consideration is also being given to measures to allow people who are already in negative equity to trade up if they can sustain a larger debt.

And maybe the state will pay the rent through housing benefit. Cloud cuckoo land.

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HOLA4412

Banks cutting 'debt deals' that include partial or total write-off

Friday September 02 2011

A small number of investors and businesspeople are cutting "final" settlement deals with banks which allow them to walk away from their debts.

Some banks are offering commercial customers "settlements" that usually involve an obligation to pay the debt at a future point -- but crucially some "settlements" can free borrowers of all future obligations to pay back their loans.

The news comes as Small Business Minister John Perry urges Irish banks to write off some of the money owed by businesses to ensure the survival of firms and to protect jobs.

Enterprise Minister Richard Bruton is also examining ways to aid SMEs that are crippled with property debts after boom-time investments went awry.

An investigation by the Irish Independent has revealed that several banks, including ACC, Anglo Irish Bank and Bank of Scotland (Ireland), are allowing small numbers of borrowers to "settle" debts.

Settlements

In some cases, the future earnings of borrowers are "garnished" so the debt is repaid in the future or the borrowers will have to repay the cash if they come into money in the future.

But in a small number of cases settlements are final and there is no recourse even if the borrower later comes into money. This will, however, affect the borrowers' credit rating and his or her ability to borrow money again in the future.

Mr Perry, who describes himself as the "voice for small business in Government", said the banks needed to recognise how much they could realistically recover from businesses with large debts.

But the Government's credit czar John Trethowan, is urging "caution" and does not favour a blanket-type scheme that could apply to all businesses with large property loans.

The Credit Review Office head said there were many cases where businesses had sunk all of the money they made in the boom times into property and now, when they needed cash reserves, they couldn't get at it -- but he added that widescale debt forgiveness should not be an option.

Mr Trethowan said there must be "moral hazard" as any broad scheme could be abused. Banks, however, are currently doing deals with business customers that do involve changing the terms of their loans. "The banks are allowing them to have holidays from loan repayments or to just pay interest for a period to try to help them," he says.

"Restructuring is going on and settlements are being reached but they still have to hurt," he says. "If they don't they will be badly abused."

Mr Trethowan believes it should be left up to individual businesses to deal with their banks on a case-by-case basis.

"If the flood gates are opened then we could end up with another banking crisis. It depends on how much bad debt the banks have provided for."

The former banker believes it will take between five and seven years for many businesses to get out of trouble and says the banks should be prepared to work with them over that period. "I think the banks will stay with them and help them to survive."

The Credit Review Office, which looks at loan applications that have been turned down, said it would continue to see what it can do "if there is a germ of survival" for a business

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HOLA4413

Noonan rules out 'free-for-all' debt forgiveness

http://www.irishtimes.com/newspaper/finance/2011/0902/1224303345688.html?via=rel

THE MINISTER for Finance Michael Noonan has categorically ruled out a universal debt forgiveness scheme for struggling mortgage borrowers, saying it was “ not a realistic option”.

“If there is some kind of free-for-all debt forgiveness, there are a lot of people going to be in the queue,” Mr Noonan told the TDs and senators.

Ruling out an early budget, he said he may seek savings beyond the targeted €3.6 billion if global economic turmoil leads to weaker domestic growth in 2012.

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HOLA4414
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HOLA4415

Don't matter how many brick buildings they build, they are near enough worthless unless there are the long-term stable jobs in the vicinity to buy and maintain them. ;)

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HOLA4421

Debt forgiveness a non runner.

http://www.irishtimes.com/newspaper/breaking/2011/0907/breaking13.html

Mr Kenny said the Government was cognisant of people struggling to pay their mortgages but ruled out any form of debt forgiveness.

“There will not be general debt forgiveness because that’s asking every taxpayer who is paying their way to pay for all of the others and that will not apply,” he said.

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HOLA4422

Almost 10pc of mortgage holders get payment cut

http://www.independent.ie/business/personal-finance/property-mortgages/almost-10pc-of-mortgage-holders-get-payment-cut-2867237.html

LENDERS here are changing more mortgages to reduce repayments than any of their European counterparts.

Almost 70,000 homeowners have won agreements from their banks to lower their monthly repayments by opting to pay interest only or by being granted a payment holiday.

But investors who have put money into the banks may be better off if Irish lenders repossessed more homes. Close to one in 10 mortgages, or 9pc, have been modified to allow homeowners to reduce their monthly repayments, according to credit rating agency Fitch. This compares with just 3.2pc in Spain, which has also had a property price collapse.

"Fitch's central base expectations are for a further fall in house prices which, along with the difficult economic environment, is likely to lead to a continuing rise in mortgage arrears," the agency said.

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HOLA4423

Almost 10pc of mortgage holders get payment cut

http://www.independent.ie/business/personal-finance/property-mortgages/almost-10pc-of-mortgage-holders-get-payment-cut-2867237.html

LENDERS here are changing more mortgages to reduce repayments than any of their European counterparts.

Almost 70,000 homeowners have won agreements from their banks to lower their monthly repayments by opting to pay interest only or by being granted a payment holiday.

But investors who have put money into the banks may be better off if Irish lenders repossessed more homes. Close to one in 10 mortgages, or 9pc, have been modified to allow homeowners to reduce their monthly repayments, according to credit rating agency Fitch. This compares with just 3.2pc in Spain, which has also had a property price collapse.

"Fitch's central base expectations are for a further fall in house prices which, along with the difficult economic environment, is likely to lead to a continuing rise in mortgage arrears," the agency said.

Just delaying the inevitable – An interest only loan on a depreciating asset is not a good move.

I wonder if we look at the percentage of “homeowners” here who have “negotiated” similar and add this to the number claiming SMI (the last count I had was 14000 or a years worth of sales at current transaction levels) what percentage you would get?

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HOLA4424

NAMA defends €200,000 a year salaries for indebted builders

http://www.independent.ie/national-news/nama-defends-euro200000-a-year-salaries-for-indebted-builders-2872313.html

The chairman of NAMA Frank Daly told an Oireachtas Committee that the average rate is €75,000 to €100,000 a year but added the practice of paying salaries is the best way to ensure that billions of euros worth of loans are repaid.

Three top developers owe NAMA more than €2bn each, it emerged earlier.

It is understood that two developers are on the higher €200,000 a year salaries.

He also said that 10pc to 15pc of developers are not playing ball with the agency.

The agency also has 8,000 apartments and 2,000 houses on its books with few buyers in the market.

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HOLA4425

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