Home > Uncategorized > All Mortgage Distress Cases Not “Solvable” Despite Assurance by Taoiseach At Leaders Questions

All Mortgage Distress Cases Not “Solvable” Despite Assurance by Taoiseach At Leaders Questions

All Mortgage Distress Cases Not “Solvable” Despite Assurance by Taoiseach At Leaders Questions

Thousands of people are in danger of losing their homes.
On Wednesday last, at Leaders Questions in The Dail, Taoiseach Enda Kenny said that if people engaged with their lenders all mortgage distress cases were “solvable”. Seamus Healy Td, who raised the matter, was accused of scaremongering about people losing their homes.
But for the second day in a row, the Taoiseach has been shown to be completely wrong. The Insolvency Service of Ireland (ISI) has to-day revealed that only a handful of mortgages have been restructured through the insolvency procedure over the 6 months since it came into effect. Seamus had pointed out to Enda Kenny several weeks ago that 30,000 householders would be unable to avail of the process because their incomes were below the minimum allowable expenses under the Insolvency Act. Now the advocacy groups for those in mortgage distress-Phoenix, New Beginnings, Flac and Irish Mortgage Holders Association- have confirmed that this is one of two major reasons that the system is failing. Many people have no money to give the bank. The second reason is that the bank has too much power under the act to veto settlements. So even if the householder has some money to pay the bank, most such householders cannot avail of it either. The system is not working.
Yesterday the Taoiseach told Seamus Healy that it was untrue to say that a house was being repossessed every day. Within two hours this was shown to be false at the sitting of the Oireachtas Committee on Finance. The Central Bank website showed that already almost two householders per day were losing their homes. This figure is to rise sharply as the number of repossession processes initiated in the second half of 2013 increased by a factor of six-from 565 to 33,000.
The government parties are trying to cover up the problem until after the local elections

Professor Ray Kinsella , Professor of Banking at UCD, has supported the view of Seamus Healy TD that the extent  of repossessions of homes now in train constitutes a major crisis.

In his column in the Irish Examiner to-day Friday April 4, Professor Kinsella says:

But there are also developments in the wider economy that impact on health, including mental health, that is left pushed to the outside of a policy calculus on UHI. A notable example is the exponential increase in housing repossession now under way and which will inevitably and inexorably impose the most severe levels of mental stress, and worse, on the health of tens of thousands of householders.

The Government knows this to be the case — the figures cited in the Dáil recently by Séamus Healy TD are truly shocking. TDs have repeatedly referred to the causes of this crisis and what needs to be done. Mainstream politics is in denial.”

A further raft of repossession cases will come before circuit court sittings in the coming week

 

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