TIME FOR BANKS WHO SOLD MORTGAGE PRODUCTS AND OTHER LOANS TO DEAL WITH REALITY - KENNY

Posted on November 22, 2012 12:03 PM   |   Permanent Link   

Dublin Bay North Labour TD, Seán Kenny, has welcomed reports that there is fresh hope of a deal for householders who are experiencing difficulties with mortgage debt, after it emerged that new lenders are taking over their loans.
"The Irish Independent has reported that numerous banks are attempting to sell their Irish mortgages. If these reports are true, this could mean that mortgage holders could get a write-off deal on their debts, because the companies that buy up mortgage and consumer loan books are more likely to agree to write off debts, as they have bought the loan portfolios at a massive discount.

"Many mortgages issued were for 100% of the value of homes at the peak of the boom. Many of those who took out these mortgages are now heavily in negative equity after house prices collapsed. The sale of loan books to new operations offers the best hope for consumers to get deals on their debts, especially for those in trouble meeting repayments.
"I also hear that banks are looking to sell on parts of their non-mortgage loan business. I am told frequently by people that domestic banks have shown a marked reluctance to agree debt deals with distressed customers, despite the introduction of the personal insolvency legislation, which is expected early next year.

"I would ask the Minister for Finance, Michael Noonan, to clarify whether these reports today are true, as I think it is time that banks who sold mortgage products and other loans to customers, dealt with the reality that they are not going to recover all of this money because of the drastic downturn in the economy, and that writing off debt is the best outcome for the bank and for their customers."