Tuesday 21 August 2018

iCare exposes State's complete failure to solve mortgage crisis

Solutions and proposals exist but our Government consistently refuses to implement any of them

'The local authority pays most of the rent to iCare. At any time in the 30 years, the family can buy back their home from iCare at the discounted price iCare paid the bank' (stock photo)
'The local authority pays most of the rent to iCare. At any time in the 30 years, the family can buy back their home from iCare at the discounted price iCare paid the bank' (stock photo)

Stephen Donnelly

David Hall has just done something brilliant. His new weapon in the mortgage crisis, iCare, will help hundreds of families at risk of eviction. It will demonstrate a housing model that can be scaled up to help thousands of families. It will save the State cash. And it will lay bare the almost total failure of the Government to provide solutions to the mortgage crisis that work for people as well as for banks.

iCare is a new not-for-profit housing body launched last Wednesday with the support of Irish Mortgage Holders Organisation and AIB. Here's how it works: an individual or family with an unsustainable mortgage surrenders their home to the bank. The bank closes out the full mortgage, including any residual debt in cases of negative equity. iCare buys the home from the bank at a discount and signs a 30-year lease with the individual or family.

The local authority pays most of the rent to iCare. At any time in the 30 years, the family can buy back their home from iCare at the discounted price iCare paid the bank. To qualify, people must be eligible for social housing, have no chance of paying their current mortgage, and there are maximum values for eligible homes.

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