State-owned Permanent TSB expects to repossess up to 4,000 houses, Dail Finance Committee told
Published 09/04/2014 | 13:40
State-owned Permanent TSB has confirmed it expects to repossess "thousands" of homes as it works through mortgage arrears targets.
But, the bank expects the larger share of repossessions to be of buy-to-let investments, not family homes.
Numbers prepared by the Permanent TSB suggest 10,000 customers are heading down the road of losing their home, Fianna Fáil Finance spokesman Michael McGrath
More than 3,000 of the bank's customers face losing their homes despite being less than three months behind on repayments the numbers show, he said.
Most legal actions will not lead to repossession because affected customers re-engage with the lender, bank executives said.
However, seizures through the courts are expected to run into hundreds in 2014, the head of the banks arrears management team Shane O'Sullivan said.
That compares to 60 last year.
In total the bank anticipates the repossessions resulting from the mortgage crisis to in the "low single digit" thousands, Mr O'Sullivan told the Dail Finance Committee today.
Asked by TD Stephen Donnelly if the bank expects the level of repossessions to be between 2,000 and 4,000, Mr O'Sullivan said it would be at the "lower end" of that range.