Repossession statistics in Ireland, consider the numbers

With the new report on repossessions out it is probably a good idea to look at some of the actual statistics. Many commentators mistakenly describe property that isn’t taken back through repossessions as a ‘repossession’ when it is more in line with liquidated damages.

A repossession by definition is a seizure of collateral securing a loan in default, in most jurisdictions this comes with a court order allowing the lien holder to reclaim the property. In a ‘voluntary surrender’ that isn’t seizure process, and in an abandonment it is also about limiting the value reduction of idle property, for that reason we break the figures down into court ordered possessions and those that are done by choice or by leaving them without notifying the lender.

Here’s what it looks like.

And what you can see is that the orange bar which is the abandonments and voluntary surrenders far outweigh the blue bars which are the ‘repossessions’ where somebody is being brought through the process in court.

The non-court repossessions …

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BankruptcyAdvice.ie our new bankruptcy offering

We have been in the debt solution space for many years now and we also offer personal insolvency solutions, but even with that there was a missing string to the bow which was bankruptcy.

Bankruptcy is a legal process and that is why we teamed up with one of Ireland’s experienced solicitors in this area to make the new joint venture. Anthony Joyce Solicitors in Dublin 8 have been working in the bankruptcy space for many years now and they also offer this solution in other jurisdictions.

BankruptcyAdvice.ie is a service which has two options DIYbankruptcy.ie which is a simple way of doing it for cheap by yourself with all of the instructions you may require as well as including a face to face meeting. The more involved option (typically for more complicated cases) is where you have various professionals with you throughout the process.

We have a unique service in this respect as we don’t just have qualified financial advisors, insolvency practitioners and solicitors. We also have compliance experts (to ensure …

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Morning Ireland: Business news with Brian Finn, speaking to Karl Deeter about bankruptcy

Brian Finn of RTE’s Business News spoke to Karl Deeter on Morning Ireland’s business news. He asked how the new changes to bankruptcy legislation would affect both borrowers and the property market.

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Don’t pay the investment mortgage, just pay us

Something that is often overlooked when people hear mortgage statistics is the various shenanigans that are going on underneath the headline figures. For instance, people are often asked to stop paying investment mortgages and to divert the rent to the family home. This is one creditor playing hard-ball with the borrower at the expense of another creditor.

While it does make sense to prioritise your family home, there is also the issue of wondering why the rent shouldn’t go to the investment loan provider given that it is generated from the asset they backed? Clearly this is a judgement call, but when the family home lender is effectively asking for that income then it strays into the area of being an ethical one as well.

The letter to the left is one such example, while it doesn’t state ‘shaft the investment loan provider’ as clear as you might expect, it was the basics of what the borrower was told to do.

They use a bankers vernacular which says ‘we won’t …

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Central Bank: solving the mortgage crisis by making it worse

Yesterday was the proposed deadline for debt mediation firms to make their submissions to the Central Bank. The guidelines had only come out about three weeks previous to this and given how much was involved they realised that they had made a deadline in trying to rush it through and gave industry an extension, we didn’t need the extension, what we need is the type of common sense which is vitally lacking in the new requirements the Central Bank are pushing through.

There are a lot of things that people don’t hear about in the compliance area that will result in future news stories, this current round of regulation is going to be in that category. The Central Bank has ensured that there will be less choice, that it will be more expensive – which locks borrowers in trouble out of the process and with a general outcome that banks will hold more sway in the future on deals that do or don’t get done than they did in the past. This is a big banking win as far as …

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Debt chronicles: There can be no solution for some people

A while ago we decided to document some of the things we encounter as debt managers in order to give a taste of the experience from within the process. This is more than anecdotal but nowhere near outright empirical proof of how things are going for everybody else in the process.

The most recent meeting involved a site in rural Ireland. The borrower was a former developer who now lives abroad. Like many property deals he wasn’t the only one on it but he happens to be engaging and when that happens the idea of ‘severable liability’ is about all the bank can hope for.

The developer made an offer of a 30% recovery, this was rejected at the start of the year. Given that the site is worth about 20% of what it went for (at best) this would have been a decent outcome, frankly I’m surprised the developer even made one so high given that in this instance they have the bank over a proverbial barrel.

The loan is in deep arrears, but what’s worse is that the …

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RTE Drivetime: What it’s like to be inside a debtors meeting

We were asked to talk to Drive Time on RTE radio about a borrower meeting we were at with a bank. This meeting was typical of the ones we regularly attend and also typical in both tone and outcome.

While we accept the bank have a collection agenda underpinned by the mortgage contract, their methods for obtaining a result are unnecessarily painful and that doesn’t make economic sense for any party involved.

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What happens when you are in banks for a meeting…

We often find ourselves (usually to our detriment) involved with meetings where a person brings us along to meet with the bank. Something about it always reminds me of that line from Slaughterhouse 5 ‘so it goes’, because there is always a sense of inevitability around them.

Yesterday I had one such displeasure with a subsidiary of one of our pillar banks.

They brought our mutual client in to discuss ‘options’, which is bank-speak for ‘take it or leave it choices’, they made their determination based on the clients most recent behaviour where they had met interest only payments for several months.

When asked if they had considered any other options (the usual host of alternative solutions) we were told ‘they were refused already’, but that decision it turns out was based on information provided eight months ago when the person was unable to make payments.

The ‘new deal’ is not nearly as good as what the old deal could have been, but there is a logical disconnect where you refuse long term solutions based on old information but allow …

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