Wednesday 7 December 2016

Main banks threat to repossess 31,000 homes

Published 03/04/2015 | 02:30

Repossessions of family homes are expected to surge
Repossessions of family homes are expected to surge

REPOSSESSIONS of family homes are expected to surge after it emerged that the main banks are now threatening 31,000 homeowners with the loss of their properties.

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New Central Bank figures show the threats to take homes off people make up 40pc of the "solutions" the banks are proposing.

These are part of targets set for them by the Central Bank for dealing with the arrears crisis.

And the banks have reached the end of the line with 17,000 of these mortgage holders and are at a more advanced stage of attempting to take possession of the homes.

Some of these people have already given up their homes voluntarily, the Central Bank said.

Loss of ownership has been put forward in one third of all mortgage arrears resolutions with homeowners by the end of last year.

The figures, which set out how the banks have dealt with targets set for them by regulators, show just 46,000 of those in arrears on a residential home loan have had their mortgages restructured.

Arrears

The data relates to mortgage arrears resolution targets (MART) set by the Central Bank for six domestic lenders - AIB, Bank of Ireland, Permanent TSB, Ulster Bank, ACC and KBC Bank. The targets are no longer in place, but the Central Bank will continue to monitor them on the issue.

Banks were allowed to count a threat to repossess as a "solution" under the targets.

The majority of the solutions - close to 41,000 - reported by the banks for both owner-occupier and buy-to-let mortgage holders in arrears involve some form of loan restructuring arrangement.

Only a small number of cases had been resolved through the State's new insolvency mechanisms.

The figures were contained in the Central Bank's latest mortgage arrears resolution targets update. The update shows the lenders met their targets for offering solutions for distressed borrowers.

Irish Independent

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