David Hall now predicts 20,000 repossessions over the next six years.
Mortgage advocate says level of repossession would be driven by vulture funds who are buying up distressed loans from banks
Hi LeperFrom where I sit David Hall is representing many who abide by the rules and for some reason or other just could not keep up loan repayments. I am not talking about the people who bought to let or such like and never repaid a penny; these are scroungers. But, there must be some middle ground where people who tried their best to pay can be facilitated without being condemned to penury.
When the HAP payment is paid to mortgage holders does the State get shared ownership of the property. What about the person who bought an identical house at the same time in the same location but is meeting their mortgage obligations without any help.Hi Leper
Very interesting post.
I have always advocated that the borrowers who are in trouble but who are engaging deserve protection and help.
I have strongly, if unsuccessfully lobbied, that the Housing Assistance Payment - HAP - should be extended to helping mortgage holders
who would qualify for social housing, who can't afford their mortgage. I don't see why we pay renters but not home owners.
But I want to see the thousands of people who pay very little and who duck and dive, repossessed quickly. Now, to my astonishment, David Hall is calling for it too: Wow! Hall: We need legislation to accelerate repossessions of those who don't engage within three months
I have also criticised the Central Bank rules for forcing the banks to sell NPLs.
But I have no problem at all with the banks selling the thousands of mortgages of those who don't pay.
David Hall does great work, but he makes these wild statements about tsunamis of repossessions and the bullying and harassment by vulture funds which really scares the life out of people. Not only does this scaremongering really cause great distress, it causes the politicians to make stupid policies instead of focussing on legislation which would help people, for example
Instead of analysis, we have shouting matches.
- controlling mortgage rates or banning cash back
- extending HAP to mortgage holders
- Obliging vulture funds to offer the same mortgage rates which the selling bank offers
Hi HorsemanWhen the HAP payment is paid to mortgage holders does the State get shared ownership of the property.
1. In my later working days as an unpaid trade union rep there wasn't a month went by without some member approaching me looking for advice regarding mortgage repayments and arrears. Their biggest concerns were (a) The bank were not engaging (b) The amounts of arrears were increasing (c) Letters were arriving regarding threats of eviction, penalties etc.
2. These people paid what they could and showed me receipts of payment, letters from the banks and written summaries of telephone calls from the banks point-of-view. You could not include such people in the "won't pay anything brigade."
3. In the recession negative equity set in and people owned houses that were worth less than what was left to pay. Even the banks knew repossession was a bad deal and somewhat laid off on their customers.
4. Property prices jumped again after the recession. Suddenly, the banks were on to this like locusts and (i) Repossessions were once again an option for them (ii) Selling off any loans in arrears to a Vulture Fund. Repossessions were always considered bad news and so the Vulture Fund has become the easier option.
5. I bet that the Vulture Funds took possession of the outstanding loans quite cheaply. Therefore, I see no reason why the banks could not engage with their customers more favourably. I am not saying that loans should be written off. But, even a Leper without financial qualifications (or for the record no qualifications whatsoever) can see that there are options e.g. extending the term of the loan. I can think of more options too.
6. Is David Hall scaremongering? No, he's not. He is saying what he believes and he says it well. Then a certain person says that people in arrears are better off dealing with Vulture Funds (described as "rubbish" by David Hall). I agree with him. I predict that repossessions will become more widespread too.
7. How many people committed suicide because of the behaviour of the banks? How many people self-harmed while trying to take their own lives? The answer is we don't know, but thinking these did not happen is crazy. There isn't a house in the country worth a drop of blood, let alone suicide. Lose sight of this and you might as well take out shares in a Vulture Fund.
8. I have no sympathy whatsoever with people who took out loans and just refused to repay anything. But you see, the banks have a major problem here. They gave out the loan and nothing is coming back in their direction. Eventually, the banks will crawl to these mortgagees and perhaps settle for something rather than nothing. The cannon fodder are those genuine people that try to pay as much as they can afford. It appears the bank is treating them with contempt by not entering into worthwhile negotiations.
9. Do we need David Hall? Yes we do. He is filling a need created by the banks. The banks can only blame themselves for the emergence of David Hall.
10. You're earning well, you're in line for promotion, your bonus payments are always on track, life is good etc etc. Can these change? - Yes they can and considerably faster than you think. You don't know when misfortune will hit you. Your job can cease, somebody can get seriously ill, divorce can happen etc etc. Who can say that none of these will happen? If they do happen, can you afford to keep paying the mortgage?
11. When the banks need to increase their profits, they can come up with plans. I'm sure even they can come up with something to assist genuine defaulters with mortgage repayments. Even I can offer some solutions, so can they, if they wish.
The Bottom Line here is we need the banks to engage with its customers. Anything else is a disaster.