Skip to main content

Home Repossessions Record Increase...

Record increase in families fighting to save home...



REPOSSESSION orders sought by banks and mortgage lenders soared by more than 100pc last year in the wake of the downturn.

According to figures complied by the Courts Service, 758 new applications for possession orders were brought to the High Court in 2008 -- compared to 374 the previous year.

The increase is the largest ever recorded by the courts and points to aggressive tactics deployed by some lenders to recover their debts.

Many of the applications were from subprime lenders, such as Start Mortgages, but there were also from major banks such as AIB and Bank of Ireland.

In the past six months of 2008 the High Court received 505 applications -- compared with 253 at the start of the year.

However it was the final quarter of last year, when the country was hit by massive job losses, which saw applications gain momentum.

Between October and December 294 applications were brought by lenders -- compared to just 96 during the same period in 2007.

The big increase in applications led to a total of 238 properties actually being taken away from their owners by financial institutions who were granted repossession orders -- the highest number of repossessions in four years.

Struggle

The figures come as thousands of people struggle to meet mortgage repayments in light of an increase in unemployment -- which is set to hit more than 400,000 by the end of this year.

Recently the Master of the High Court, Edmund Honohan, warned an "avalanche" of home repossession cases was anticipated for the courts in light of what he described as a recession of 'historic proportions'.

A county-by-county analysis of the orders granted show Dublin was the worst hit, with 53 repossession orders -- 35 on residential properties.

This was followed by Cork, which saw 21 repossession orders granted -- 11 on residential properties.

Last night Michael Culloty of the Money and Advice Service (MABS) said people facing home repossession were feeling isolated and desperate.

And he said one in three callers to the organisation were seeking help after falling behind their mortgage repayments.

"We have seen an increase in people coming to us to cannot met their mortgage payments. We are urging people to negotiate an affordable medium term agreement if they are falling into difficulty."



Report by Patricia McDonagh - Irish Independent.

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

Varadkar says it’s ‘not the worst thing’ that Ryanair is buying up homes for staff

25 of the 28 units in a new development at Fostertown Place in Swords were purchased by Ryanair for their cabin crew. TAOISEACH LEO VARADKAR says he does not have any issue with Ryanair or other companies buying up almost entire housing estates for their staff. He said there is a big difference between companies like Ryanair bulk-buying houses and apartments compared to investment funds. “We are building over 30,000 new homes now every year,” he said. “If you think about it, that’s 70,000, 80,000 or 90,000 bedrooms every year so we are finally seeing housing being built on scale,” Varadkar said. “We want to scale that up this year and next year as well because we do have a rising population and family sizes are getting smaller, so we need more housing and we are making progress,” he said. “In relation to Ryanair specifically, I don’t think it is the worst thing that a company would buy accommodation for their staff. It’s not the first time this has happened, it has be...

Irish Property Overvalued By 30%...

Irish property could still be overvalued by 30 percent... Irish house prices increased by around 330 per cent between 1996 to 2007 – a bubble of impressive scale and duration, but a bubble nonetheless. Plenty of outside observers saw the writing on the wall and said so, but they were overlooked in the Celtic Tiger gold rush. The European Central Bank (ECB), the Organisation for Economic Co-operation and Development (OECD), the Financial Times, the Economist and the International Monetary Fund (IMF) all spoke of dire portents early and often. They were ignored. Cheap and easy money arrived in Ireland just as the tiger economy geared up. The country adopted the euro and access to a large pool of low-cost European finance with it. When the bubble burst Ireland's main domestic financial institutions were wiped out and European institutions and the IMF took over the nation's financial affairs. So the question now is has the country reached the end? According to a report i...