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 Post subject: Re: Residential Mortgage Arrears, Restructures and Repossess
PostPosted: Thu Nov 16, 2017 8:51 pm 
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Under CAB Investigation

Joined: May 12, 2012
Posts: 1912
Sean O'Rourke had a report from a reposession court the other day with some extraordinary details.

The reporter spoke to a man who lives in West Cork, is 61, and in 2008 got an interest-only 29 year-mortgage with Pepper for €400k at something between 7% and 8%! Apparently the repayments were €3k from day one.

His business has gone south and his health has suffered and he looks like he's going to lose the home.

Usually in these cases there was stupidity on the part of the bank and the lender equally. I'm normally sceptical of those who claim 'reckless lending' but in this case my sympathy is entirely with the customer.


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 Post subject: Re: Residential Mortgage Arrears, Restructures and Repossess
PostPosted: Sun Nov 26, 2017 6:24 pm 
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Joined: Sep 29, 2010
Posts: 8370
Location: London, innit
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Quote:
Personal insolvency practitioner Mitchell O’Brien believes that debt for equity is the answer for those in mortgage arrears. And his view is gaining ground in the courts, and even with the most stubborn lenders

https://pbs.twimg.com/media/DPjYBdXXUAAtPdV.jpg:large

Business Post Feature on Mitchell O'Brien - naturally Casino Hall also reckons people should be allowed to move on from debt

https://twitter.com/mitchellob?lang=en


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 Post subject: Re: Residential Mortgage Arrears, Restructures and Repossess
PostPosted: Mon Nov 27, 2017 12:44 am 
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Under CAB Investigation
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Joined: Apr 2, 2008
Posts: 1997
Location: Cork and Kerry
Skippy 3 wrote:
Sean O'Rourke had a report from a reposession court the other day with some extraordinary details.

The reporter spoke to a man who lives in West Cork, is 61, and in 2008 got an interest-only 29 year-mortgage with Pepper for €400k at something between 7% and 8%! Apparently the repayments were €3k from day one.

His business has gone south and his health has suffered and he looks like he's going to lose the home.

Usually in these cases there was stupidity on the part of the bank and the lender equally. I'm normally sceptical of those who claim 'reckless lending' but in this case my sympathy is entirely with the customer.



Aaaaaahhhhhh, dreamy "West Cork". Where all the "very best people" live.

Near the sea, best attitudes, a great place to retire. Sea air and lots of coves and inlets for bathing pleasures.

I'm afraid that yes, he might have the loose his house if he cant' afford it. Some people want it all but don't want to pay for it. Living the dream!

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There is a reality other than the one we are told about...


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 Post subject: Re: Residential Mortgage Arrears, Restructures and Repossess
PostPosted: Mon Nov 27, 2017 10:11 am 
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Of Systemic Importance

Joined: Nov 4, 2011
Posts: 5545
Location: SthDub
wii4miinow wrote:
Skippy 3 wrote:
Sean O'Rourke had a report from a reposession court the other day with some extraordinary details.

The reporter spoke to a man who lives in West Cork, is 61, and in 2008 got an interest-only 29 year-mortgage with Pepper for €400k at something between 7% and 8%! Apparently the repayments were €3k from day one.

His business has gone south and his health has suffered and he looks like he's going to lose the home.

Usually in these cases there was stupidity on the part of the bank and the lender equally. I'm normally sceptical of those who claim 'reckless lending' but in this case my sympathy is entirely with the customer.



Aaaaaahhhhhh, dreamy "West Cork". Where all the "very best people" live.

Near the sea, best attitudes, a great place to retire. Sea air and lots of coves and inlets for bathing pleasures.

I'm afraid that yes, he might have the loose his house if he cant' afford it. Some people want it all but don't want to pay for it. Living the dream!

Living the dream , yes. But surely there should be some kick back against the numptys who gave out a loan like that. They're supposed to be the educated lot!


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 Post subject: Re: Residential Mortgage Arrears, Restructures and Repossess
PostPosted: Mon Nov 27, 2017 11:36 am 
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Real Estate Developer

Joined: Dec 12, 2007
Posts: 886
Skippy 3 wrote:
The reporter spoke to a man who lives in West Cork, is 61, and in 2008 got an interest-only 29 year-mortgage with Pepper for €400k at something between 7% and 8%! Apparently the repayments were €3k from day one.

I don't think he'd have been with Pepper in 2008, they entered the market in 2012, so I guess he got a GE Capital sub prime loan.

3k on 400k is 9%, I'd expect his repayments of 7.5% to have been closer to 2k than 3k. Maybe he means he's got the rate at between 7-8% and it rose shortly after he got the loan or GE Capital weren't the most upfront on the overall cost to their clients.

ECB rates were 4-5% for most of 2008 so interest only might well have been 7-8%. His problem wasn't so much the rate but more that he shouldn't have got a loan of that size.

Current Pepper rates seem normal enough so is he still on 7-8% IO? His mortgage would be cheaper on a current SVR with principal repayments. (400k at 3.5% over 20 years is 2.4k per month)

FreeFallin wrote:

But surely there should be some kick back against the numptys who gave out a loan like that. They're supposed to be the educated lot!

Rugby educated maybe.. anyway having to sell on the loan at a 50% loss is a bit of a kicking.


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 Post subject: Re: Residential Mortgage Arrears, Restructures and Repossess
PostPosted: Thu Dec 07, 2017 9:55 am 
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Joined: Aug 20, 2009
Posts: 4916
CB have released some Research on Non-Performing Loans in the Irish Mortgage Market

https://www.centralbank.ie/news/article ... 6-Dec-2017

Resolving a Non-Performing Loan crisis: The ongoing case of the Irish mortgage market
https://www.centralbank.ie/docs/default ... f?sfvrsn=5

Mortgage modification in Ireland: a recent history
https://www.centralbank.ie/docs/default ... ry-(mccann).pdf?sfvrsn=5

Borrower-lender engagement during the Irish mortgage arrears crisis
https://www.centralbank.ie/docs/default ... f?sfvrsn=4


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