What does "could be suitable for social housing" mean?
I was unaware that such a scheme was in existance.
Couples without children or single people can forget about it.
Brendan
It means that the family must undergo a Housing Needs Assessment by the Local Authority.
351. Deputy Robert Dowds asked the Minister for the Environment, Community and Local Government the position regarding the proposed pilot scheme of a mortgage-to-rent system; and if he will make a statement on the matter. [37028/11]
Minister for the Environment, Community and Local Government (Deputy Phil Hogan):
The introduction of two mortgage-to-rent schemes, as part of a range of measures to assist households with unsustainable mortgages, was announced in the Report of the Inter-Departmental Group on Mortgage Arrears which was published on 12 October 2011. Work is now under way to implement key elements of the report and I will shortly launch two mortgage-to-rent schemes in line with the report’s recommendations.
These schemes will operate on a pilot basis initially, subject to prompt review ahead of wider implementation. Under each scheme, households in extreme mortgage distress who are eligible for social housing will be able to remain in their homes as social housing tenants with either the lending institution or a housing association taking ownership of the property. My Department’s Housing Division is now well advanced in its preparatory work with a lender and an approved housing body to make the pilot schemes operational as soon as possible.
mortgage-to-rent scheme, which will see a housing association take over a home owned by a family facing repossession by a bank.
The family will now rent the home from the approved housing body Cluid.
the bank involved is GE.
the lender has written off a significant portion of the debt associated with the original loan.
To qualify, the borrowers must have unsustainable mortgages and face repossession from banks.
They must agree to surrender their homes and then rent them from an approved housing body which would then take control of the property.
The Department of the Environment provides 25% of the equity for the new loan.
Where is the benefit to the homeowner. If the bank repossessed the house as they couldn't afford it then all debt would presumably be written off. Is the advantage that the homeowner can stay in that particular house, but couldn't they rent something similar anyway and social welfare would pay.
It sounds like you are underestimating the benefit to a family or individual in staying in the exact house they have been living in, people do get emotionally attached to their houses.
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