The Expert Group on Repossessions: condensed themes

We tried to put the main themes behind the 60 pages of the report (minus appendices) into a 1,000 word condensed version. 

To begin with the report (here) is just that, a report, it isn’t an automatic initiation of policy change although it may affect policy change in the future.

The Expert Group on Rerpossessions was established in September 2013 at the behest of the Troika  and was mentioned in the 9th review of the Memorandum of Economic and Financial Policies (MEFP).

They didn’t understand (nor did our own decision makers) the reasons behind the length, lack of predictability of outcome, cost of proceedings and how it stacked up compared to other jurisdictions.

We have an abnormally low rate of repossessions in Ireland, that is both in absolute terms and most tellingly in relative terms to other countries, and the system for this is also lengthy, complicated and expensive.

There is nothing in the report which calls for wholesale repossessions, and in light of the facts (rather than the spin) …

Read More

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 …

Read More

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.

Read More

RTE 6 News: Property prices

In this piece covering property prices, the increases in Dublin and the situation around the rest of the country we gave a brief comment highlighting that for the first time outside of Dublin there was a year on year sign of stabilisation in prices. Paul Murphy gave some excellent analysis on the topic.

Read More

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 …

Read More

RTE 2fm Colm Hayes Show discussing new AIB and IMHO partnership

We were asked to comment on the new AIB and IMHO partnership. There are several aspects to this that we find unsatisfactory, however we don’t disagree with trying to help debtors.

Read More

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 …

Read More

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 …

Read More

The Mortgage Restructuring Arrangement Bill 2013, a brief look under the hood

This is a piece of legislation currently at Bill stage, I can’t help but think they didn’t get anybody involved in the actual mortgage industry to contribute to this.

It was put forward by Deputy Joan Collins who is part of the new political party United Left (please update that website folks!). The ideas put forward do have some merit, but it smacks of left wing thinking wrapped up in centrist jargon which might stand a chance of passing a slightly right of centre decision making government.

Much of it has similar references to the Insolvency Act 2012, with a difference being that this is a negotiation that can be acted on independently of the insolvency solutions. It could probably do with some re-writing, for instance at several points it talks about people who don’t make it through this being able to go for a DRN, DSA or PIA – when (for …

Read More