# Housing Committee recommendations a moratorium on repossessions



## Brendan Burgess (17 Jun 2016)

FromPage 70

http://www.oireachtas.ie/parliament/oireachtasbusiness/committees_list/housing-homelessness/reports/

Recommendations
1. The Government should, at a minimum, before the summer Recess and as a
matter of urgency, fully and quickly implement the programme for Government’s strategy to deal with mortgage arrears.

2. Subject to advice of the Attorney General, the Government should introduce
legislation for a moratorium on home repossessions until such time as the
Government’s proposals are in place for dealing with mortgage distress.


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## Brendan Burgess (17 Jun 2016)

I have sent out a Press Release 


*A moratorium on repossessions would make the housing crisis worse *

Brendan Burgess 
Séamus Coffey  
Karl Deeter 

The Housing and Homelessness Committee seems to believe that there are widespread repossessions of homes occupied by responsible families who are in financial difficulties and that the lenders are doing nothing about it.

This is simply not true.

The writers have attended over 4,000 appearances in the repossession courts and we have been present when 151 orders for possession were granted. Here are our results:

*Profile of the 151 orders granted*




A borrower can avoid repossession by making regular payments (not necessarily the full amount), by engaging with the lender and by showing up in court.

At least 20% of the homes subject to court proceedings are empty.  With 10,000 proceedings in the system, that would be at least 2,000 houses.

However, there are around 30,000 mortgages in arrears over two years. If 20% of these are abandoned properties, there would be 6,000 abandoned houses which the lenders can’t repossess.

*The system should be changed so that vacant and abandoned houses can be repossessed more quickly and put back into use as soon as possible, while continuing to protect borrowers who are living in their homes and who are acting responsibly. *

The members of the Housing Committee should attend a hearing of their local Registrar’s Court to see for themselves the true picture.

*A moratorium on repossessions would also exacerbate the arrears problem *

During 2015, 48,000 mortgages were restructured by lenders.

This is ten times the number of legal proceedings issued against borrowers for repossessions – 4,088.

Where a borrower engages with the lender and pays something, they will get a restructuring. Legal proceedings are issued only where the borrower is paying little or nothing and not engaging. If a moratorium were introduced, many borrowers would stop paying their mortgage and so their situation would get worse. Arrears problems which are addressed early, are much easier to solve and restructure
*Additional points *

*Repossessing an occupied family home does not make the overall housing crisis worse.* Of course, it means that the family have to find another home, but it frees up a home for someone else who is prepared to pay their mortgage or rent.



*It is an outrageous exaggeration to suggest that 100,000 mortgages face losing their home.*  There are around 11,000 legal proceedings before the court. Last year, 918 orders for possession were granted.  While, up to a further 4,000 lost ownership of their homes either through voluntary sale or voluntary surrender, the 100,000 figure is a gross exaggeration.


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## Sarenco (17 Jun 2016)

That's a really well presented press release Brendan.  It's obvious that a lot of time and effort went into compiling those figures and it deserves a good airing in the press.  Hats off.


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## Delboy (17 Jun 2016)

But it probably won't get any traction in the Media. They'll all just hurrah the 'no more repossessions' line with a stock picture of a family worringly looking at various bills laid out before them.

Our Politicians are absolutely clueless. They're attempts at solving the housing crisis will be cack handed, inept and end up costing way way more than it really should if done properly.
I despair for this country


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## Brendan Burgess (18 Jun 2016)

Thanks guys. 

The lack of any media response to us or challenge to the Committee's findings generally was very dispiriting. 

But the Indo has given it good coverage: 

*Halt to repossessions would 'worsen crisis', experts warn TDs*
*‘Some borrowers would stop making any effort to pay mortgage'*


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## Brendan Burgess (20 Jun 2016)

It turns out that Michael McGrath was saying something similar to us:
As reported in the Examiner on Saturday: 

*Fianna Fáil: Loss of home may be the best option*


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## Andy836 (20 Jun 2016)

Jerry Buttimer was on Marian yesterday supporting the proposal to halt repossessions.


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## Brendan Burgess (20 Jun 2016)

I wonder does it apply to buy to lets as well? 

*Man who bought €1.26 million investment home hasn't paid mortgage in six years, court hears*


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## Brendan Burgess (23 Jun 2016)

Great opinion piece from Dan O'Brien in today's Indo

*Populist report on housing forgets owners, not just tenants, have rights*

But the committee's report concerned itself exclusively with the rights of a very large group (debtors) and ignored the rights of a very small group (creditors). That manifested most clearly in its proposal for a ban on property repossessions.

It goes without saying that nobody wants to see people lose their homes, but nowhere in the report is it mentioned that Ireland has the lowest rate of repossessions compared with any country for which figures are available.

That is because the balance of rights in this instance are already more heavily skewed towards debtors over creditors than elsewhere.

Nor is it acknowledged that prohibiting creditors from seeking repossessions can have negative consequences.


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## Gerry Canning (23 Jun 2016)

Delboy,
Largely agree with you except on (clueless) politicians bit, because they DO know what they are at. They all appear to be following, not leading .
They have descended into a left wing , right wing mix, both sides straying into any given days most populistic view.

I am reminded of the quote on politician.
{there goes the Mob , I am their leader, I must follow}


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## Delboy (23 Jun 2016)

Gerry

There is no 'right wing' in this country


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