Tag Archives: distressed seller

Independent: Struggling investors forced to sell at a loss

Wednesday, July 27, 2011

Mortgages with a total value of €1.3bn were now in arrears of three months or more. This represents 16pc of its €7.8bn buy-to-let mortgage book — up from 10pc in December. Low rents and difficulties finding tenants mean many buy-to-let investors lost money on their properties, director of Irish Mortgage Brokers Karl Deeter said.

Filed in Accountancy, Advisors.ie In the Press, Banking, Economics, Investment, Mortgages, property tax, Property tax, Savings, Section 23 | Also tagged , , , , , | Comments (0)

Sunday Business Post: Opinion piece ‘Banks must learn to forgive and forget’ 25th April 2011

Friday, April 29, 2011

When a bank holds a loan worth €200,000 it is an asset valued at that figure. Even if the security for the loan is a property that has fallen in value to €100,000.
So it is no surprise that banks will do whatever it takes in order to avoid turning their asset into a 50 per cent loss. In fact, even if the loan getting into trouble it doesn’t get written down to €100,000 -that only happens after the asset value has been realised. This is in part why we have three repossessions per 100,000 mortgages, while Britain has 65 times more, at about 200 per 100,000. At the same time, there has been huge political pressure via politicians and the Central Bank (formerly the Financial Regulator), via the thrice reworked Code of Conduct on Mortgage Arrears to ensure that we don’t allow people to get their homes repossessed as long as they engage’ with the lender.

Filed in Accountancy, Accountant, Advisors.ie In the Press, Banking, Debt, Economics, Financial Advice, Mortgages | Also tagged , , , , , , , | Comments (0)