AIB offering €20k incentive to people in long term arrears to voluntarily sell?

Brendan Burgess

Founder
Messages
54,682
According to Davy's report on article in the Sunday Business Post

And they will be selling a portfolio of non-performing home loans.

Brendan
 
I doubt it will make much difference.

A lot of arrears cases are much deeper and the mortgage holders have long gone to ground.
 
Hard to know.

If you are in positive equity and face being sold to a vulture fund you might reckon that a voluntary sale with a €20,000 kicker is better than facing repossession and a sale for less than the market value.

If you are in negative equity and you can get out with €20,000 in your pocket and the shortfall written off, you might be tempted.

Brendan
 
And where do these families move to? Where will they rent? How will they get a mortgage to buy a new home? More homeless???
 
bluestilton said:
More homeless???
Click to expand...

Hi stilton

AIB will not be knocking down the houses. They will be sold to people who can afford them.

So repossessions do not increase the level of homelessness.

The individuals will have to find a place to rent which they can afford. They will have the €20k and any positive equity.

And the other 300,000 mortgage holders who do pay their mortgage will pay less because mortgage rates would fall.

Brendan
 
Isn't it obvious that many people who can't afford a mortgage/rent or even find a place to rent are going homeless ?
 
michaelg said:
and of course many landlords will not take tenants who receive any social welfare payments.
Click to expand...

That of course is illegal and should be reported. HAP tenants are often more desirable as they know they're on a great deal, so will pay their share of the rent rather than risk loosing access to the scheme.
 
Leo said:
That of course is illegal and should be reported. HAP tenants are often more desirable as they know they're on a great deal, so will pay their share of the rent rather than risk loosing access to the scheme.
Click to expand...
Yes but in reality id say most landlords do not want HAP tenants,, is it reported, i doubt it, reporting would be a waste of time as nothing would come of it.
 
michaelg said:
Yes but in reality id say most landlords do not want HAP tenants,
Click to expand...

Landlords just want tenants who pay what they agree to and don't trash the place. The system we have, in particular the RTB, is very heavily tilted in favour of tenants.

michaelg said:
reporting would be a waste of time as nothing would come of it.
Click to expand...

Based on what evidence?
 
Leo said:
Landlords just want tenants who pay what they agree to and don't trash the place. The system we have, in particular the RTB, is very heavily tilted in favour of tenants.


Based on what evidence?
Click to expand...

I'm guessing lots of landlords are not declaring a rented income . going with HAP tenants brings them into the system.

If you were renting and had to choose between obvious working professionals and people on the dole, many will prefer to rent to professionals.
the landlord has the right to choose who they want as tenants.
 
michaelg said:
I'm guessing lots of landlords are not declaring a rented income . going with HAP tenants brings them into the system.
Click to expand...

Again, you're just guessing. The fact that it's now a criminal offence to fail to register a tenancy has put a significant dent in landlords not doing so and declaring rental income.

michaelg said:
If you were renting and had to choose between obvious working professionals and people on the dole
Click to expand...

If they're on the dole surely they're leaning towards social housing? The lack or rental supply and high standards rental properties have to meet means there's very little private rental supply at the lower end of the market. The old days of small flats and bedsits are gone, they've been outlawed.
 
You must log in or register to reply here.
Menu
Log in
Register