tag:blogger.com,1999:blog-2826531655042170344.post7904039882250945110..comments2024-03-26T11:29:52.986+00:00Comments on Economic Incentives: Evidence of Non-PayersSeamushttp://www.blogger.com/profile/15679299530222667673noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-2826531655042170344.post-84533450742330056872015-03-19T13:12:36.629+00:002015-03-19T13:12:36.629+00:00Hi Stephen,
I have no problem with your case #2 c...Hi Stephen,<br /><br />I have no problem with your case #2 ceasing making payments if (i) they're on the breadline or (ii) they're close to the breadline and in spite of the potential to make a small contribution they'll face repossession order (Note my comment "financially justifiable" in 2nd post),<br /><br />PROVIDED their house is swiftly repossessed and the residual dealt with quickly by the creditor (be it bankruptcy or short term garnishee order.)<br /><br />The problem outlined in this blog and by Bredan elsewhere is that these repossessions NEED TO TAKE PLACE (they must happen) in a swift and un-emotive/objective manner.<br /><br />But are we, as a nation (a voting public), mature enough to accept this. Based on recent evidence, as a country we are not mature enough to deal with this.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-38459000151841300972015-03-18T21:04:07.159+00:002015-03-18T21:04:07.159+00:00Hi Anonymous,
In circumstances where a mortgage h...Hi Anonymous,<br /><br />In circumstances where a mortgage has been deemed unsustainable and the bank refuses to deal pragmatically with the residual balance what do you recommend? <br /><br />The borrower is likely to have to look at bankruptcy anyway to clear the residual debt and move on in life so what's the incentive to keep paying?<br /><br />Your loosing your house and probably bankrupting yourself - and you want them to keep firing in €50 or €60 a week to the bank? Seriously? <br />StephenCurtishttps://www.blogger.com/profile/04396119519844182452noreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-252781733036144962015-03-18T20:51:49.230+00:002015-03-18T20:51:49.230+00:00Hi Brendan,
Yes, under the MTR they would have to...Hi Brendan, <br />Yes, under the MTR they would have to pay €30 or €40 rent per week, but, critically, they would have security of tenure in the house. What's the point of paying €30-€40 per week, get thrown out anyway and have the bank pursue you for the full residual which you can't pay? StephenCurtishttps://www.blogger.com/profile/04396119519844182452noreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-18828294848629219462015-03-18T19:45:22.169+00:002015-03-18T19:45:22.169+00:00HI Brendan,
Statement of fact or not (and financi...HI Brendan,<br /><br />Statement of fact or not (and financially justifiable), it is an intentional decision to cease making payments. <br /><br />As such, they are living rent free and the political, social and judicial failure to deal with these cases in a swift manner is detrimental to renters and other performing mortgage holders who have no soap box representatives (how often is David Hall on the radio??).<br /><br />Best of luck this evening on The Late Debate, I wonder whether yourself and Cormac Lucey will be able to get a word in edge-ways.<br /><br />Kind regards,<br />AnonymousAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-67410478681611405872015-03-18T19:29:59.343+00:002015-03-18T19:29:59.343+00:00Hi Anonymous
I think that Stephen is making the s...Hi Anonymous<br /><br />I think that Stephen is making the same point as I have often made. If lenders pursue those who agree to a voluntary surrender in the same way as those who refuse to surrender where the mortgage is clearly unsustainable, then there is no incentive to pay the mortgage and cooperate with the lender. <br /><br />That is a statement of fact. <br /><br />He can answer for himself whether or not he recommends this as a strategy. <br /><br />Brendan Burgess <br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-18182070090725412122015-03-18T19:23:18.687+00:002015-03-18T19:23:18.687+00:00Brendan,
Is Stephen, a registered PIP, in citing h...Brendan,<br />Is Stephen, a registered PIP, in citing his 2nd example, advocating for deliberate non-payment (no matter how small the potential contribution) i.e. strategic default?<br />Good article in the Indo<br />Kind regards,<br />AnonymousAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-87325585913331792042015-03-18T18:53:26.241+00:002015-03-18T18:53:26.241+00:00Hi Stephen
"1) Those who have nothing to co...Hi Stephen <br /><br />"1) Those who have nothing to contribute i.e. are living below the ISI reasonable living expenses (as is the case with my Start Mortgages client)"<br /><br />Aren't those on Social Welfare are required to make a contribution to the cost of their housing? I have an idea that it's €30 a week for a single person, and €40 for a couple? <br /><br />Your client has not paid anything at all since January 2014. If the state buys their house under the Mortgage to Rent scheme, will they pay any of the rent?<br /><br />Brendan Burgess Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-18209005023098049872015-03-18T01:30:27.602+00:002015-03-18T01:30:27.602+00:00Interesting piece Seamus.
There are two other el...Interesting piece Seamus. <br /><br />There are two other elements in this that is worth consideration. <br /><br />1) Those who have nothing to contribute i.e. are living below the ISI reasonable living expenses (as is the case with my Start Mortgages client) <br /><br />2) Those who could pay something but who's mortgage are or have been deemed unsustainable. <br /><br />For both cohorts they will likely loose the property and in the absence of the lender taking a reasonable approach to the residual debt will be forced to look at bankruptcy. There is no incentive to make payments when in effect they are throwing good money after bad. <br /><br />In my experience banks who take a reasonable approach to residual debt don't weight outcomes based on what has been paid previously and for lenders who are unreasonable bankruptcy, right now, looks like the only viable option for which previously payments are irrelevant when the property is lost. <br /><br />Stephen Curtis<br />StephenCurtishttps://www.blogger.com/profile/04396119519844182452noreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-4375777245232766352015-03-13T15:10:05.528+00:002015-03-13T15:10:05.528+00:00Hi Séamus
Interesting analysis.
The average mo...Hi Séamus <br /><br />Interesting analysis. <br /><br />The average mortgage account balance for those over 2 years in arrears is €218,000<br />If the average interest rate is 3% ( mix of SVRs and cheap trackers) and<br />if the average remaining term is 20 years <br />Then the monthly repayment should be €1,200 a month.<br />If the arrears have increased by € 900 a month, then it suggests that the average payment is €300 per month or €3,600 a year on a mortgage of €218,000<br /><br />€300 a month is very little for renting a "mortgage" of €218,000<br /><br />Brendan Burgess Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-10380084276347215412015-03-13T12:24:57.198+00:002015-03-13T12:24:57.198+00:00You did a very good job on PrimeTime last night, u...You did a very good job on PrimeTime last night, unlike myself (a head shot in the video clip) you were interesting and informative. You showed a solid grasp of the numbers and communicated well.Gregory Connorhttp://www.irisheconomy.ie/noreply@blogger.com