by Alan Jacques
A FIFTY per cent increase in the number of court orders for sale or repossession of family homes in the first quarter of the year has been described by Fianna Fáil TD Willie O’Dea as clear evidence of an “alarming escalation” in the loss of family homes in Limerick and elsewhere.
Data from the Central Bank confirms a 10 per cent increase in legal proceedings to enforce the debt/security on residential mortgages during the first quarter of 2015.
“We are now reaping the effects in Limerick and elsewhere of four years of government inaction on mortgage arrears,” claimed Deputy O’Dea who is Fianna Fáil spokesperson on Social Protection and Social Equality.
“In recent weeks, there has been a flurry of ministerial announcements with the purpose of giving the impression of action. However, it will be months before any legislative changes are implemented. In the meantime, dozens of Limerick families are being brought through the courts and face imminent risk of losing their homes,” he said.
“The state of the sub-prime sector is truly shocking. More than 50 per cent of these mortgages are in arrears and 25 per cent are greater than two years behind in their payment.
“The situation is showing no sign of improvement. I have regularly highlighted the need for specific action in relation to these loans which were issued outside the mainstream banking sector. One possible course of action is a dedicated mortgage to rent scheme to tackle the sky high level of arrears in the sub-prime sector.”
He maintains there is still considerable doubt about the quality of restructurings that are being offered to families. Many of these, he said, are little more than “sticking plaster solution”.
“Innovative arrangements such as split mortgages are only being offered in a small number of cases. There is a continuing need for a complete culture change on the part of the banks in how they deal with customers and an independent mortgage resolution process to ensure that fair treatment is given to families, he concluded.
