There is no such thing as mortgage write off

A lot of people on here have themselves in a fluster over the thought of destressed property owners keeping their homes while having the perceived luxury of a debt write down.


AIB and EBS are offering desperate homeowners who hand back the keys of their house a reprieve on their interest rate – but will continue to pursue them for the debt.
Borrowers who hand back the keys of their home to AIB and EBS will be able to pay back any shortfall they still owe at the interest rate of their mortgage.

So in a nutshell you will have to give up the home to avail of some form of interest rate deal.

This is hardly a write of of debt nor is it complicit in allowing the borrower retain their home.

So come on give people a break! They are not soaking up the tax payers money - its the unsecured bondholders thats doing that,

I think the reason,there can be no write-offs of debt is that the Irish banks cannot absorb such a thing. The banks have already received some state recapitalization but much of this has been nullified by writing off Nama debt

If you want the banks to start writing off substantial personal debt, then they will need a further recapitalization. The government has no money for this and I doubt that our European comrades would have much appetite for it either.

Im all for giving people a break.I just cant figure out who will pay for the "break"

Yes of course they did it
They wrote off a huge amount of debt when transferring loans to Nama.
If you think that its a case of the bank hoarding money because "they dont want to write off debt", you are seriously mistaken. The banks are as close to bust as you can get and will need a lot more money very shortly.

Rumor has it that AIB, BOI & PERMAMENT TSB were allocated 7 Billion Euros for distressed mortgages etc which they have not used - I'm sure I saw Michael Noonan confirm that on an interview one evening on TV.
I also saw that Waterford Crystal workers were screwed as their Pension fund was seriously depleted but Banks can top-up theirs to the tune of 1.1 billion even though they are broke........................

It's time for the debt forgiveness as painful as it may be for some to accept. Our economy will not flourish until the overhang of unsustainable mortgage and personal debt dissipates. If this means further recapitalization and further falls in the property market so be it, the only way we will recover is the LONG term. there is no quick fix