IPAV president slams banks
Any funds which NAMA provides for financing property acquisitions will be devoted to Irish properties and not overseas properties. This was stated by a NAMA spokesman following concerns aired by Padraig Smith, incoming president of the Institute of Professional Auctioneers and Valuers (IPAV) in his inaugural address to the Institute's annual convention on Saturday.
He also called on banks to speed up the run-down of their non-core loan books in overseas markets in order to free up liquidity for Irish mortgage provision.
He added that banks should allow sales of their mortgaged properties by allowing the purchasers to acquire the mortgage and supplement it where the purchaser has the capacity to meet repayments.
This may benefit banks with mortgages in negative equity as a debt restructuring would allow the bank to reduce its exposure on the property.
"We all have seen the Bank of Scotland who for one reason or another has exited the Irish market giving massive debt reductions to some clients like anything from 30 to 80pc.
"If a bank exiting the Irish Market can do this why can't the banks that are still trading here. This again is something the Central Bank and Government need to look into. The banks and NAMA should write off or debt-forgive the difference.
"It is only then that the property market will start to work. We all know that building sites are now valued between 10 and 25pc of what they were in 2006."
He also called on banks to use local agents who could get a better return than overseas agents.
Referring to the recent Allsopspace auction Mr Smith said: "It's a pity banks can't see their way to giving these properties to local auctioneers, to sell at the same discretionary prices that Allsops sold at, for if they did they would not be underselling them as this auction did."
He added that aggrieved owners know very well the price in lots of cases are less than what a local agent could get.