40,472 mortgage`s in arrears for more than 90 days, In value terms, €7.8 billion

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<H2>Press Release 17 November 2010
The Central Bank of Ireland today published the latest data on mortgage arrears and repossessions for the period ended September 2010. The figures show that at end September 2010 there were almost 789,000 private residential mortgage accounts held in Ireland to a value of €117.4 billion. Of these 40,472 were in arrears for more than 90 days. Furthermore, the data shows that overall mortgage debt outstanding for private residential mortgages decreased by €316 million since the second quarter of 2010.
  1. Arrears Data
As at end September 2010, 40,472 mortgage accounts, or 5.1%, were in arrears for more than 90 days of which 28,049, or 3.6% of the total mortgage accounts, were more than 180 days in arrears. In value terms, €7.8 billion was owed in relation to all accounts more than 90 days in arrears, of which €5.5 billion was owed for accounts more than 180 days in arrears. Mortgage accounts in arrears for more than 90 days increased by 11.1% since the end of June 2010.
There was an increase of 2.1% in the number of formal demands outstanding which have been issued by mortgage lenders bringing the total number outstanding to 5,576. In these cases the level of arrears amounts to €92.8 million on outstanding mortgages totalling just over €1.2 billion. There was also an increase in the level of outstanding arrears cases where court proceedings had been issued to enforce the debt/security on the mortgage. At the end of September 2010 there were 3,054 such cases which is an increase of 1% since the end of June 2010. In these cases the level of arrears amounted to €101.8 million on outstanding mortgages totalling €694 million
</H2>
Latest Arrears and Repossessions Figures show 5.1% of mortgage accounts in arrears for more than 90 days


Its a ticking time bomb that needs something done.

And its not just mortgages, its bank loans, car loans and finance loans. If they dont get paid the banks will take one almighty hit.

A total of 54 properties were disposed of during the quarter. This left mortgage lenders with 522 repossessed residential properties at the end of September 2010.
A lot of homes lying empty from repossesion.
 


Watcher2

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I hope the IMF takes this into consideration when deciding how to fix us.
 

Sham96

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Biggest news story of today (and the near future). I'm glad you brought up the car and finance loans. A real looming disaster.
 

Cato

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This is a slow-release explosion that will have devastating effects for the banks, the economy, and most importantly individual families and people.

What is going to be the reaction of the government and society going to be to this coming crisis?
 

eoghanacht

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I hope the IMF takes this into consideration when deciding how to fix us.
Will they though?

Will they ************************.

They are here to balance the books no more more less. They don't care about the struggles of Mary and Mick.

How many PS workers are going to be added to that list of mortgage defaulters. It's going to get hairy around here
 

TODevastated

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eoghanacht

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This is a slow-release explosion that will have devastating effects for the banks, the economy, and most importantly individual families and people.

What is going to be the reaction of the government and society going to be to this coming crisis?
We'll end up eating ourselves, and probably not just in a literal sense
 

eoghanacht

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Biggest news story of today (and the near future). I'm glad you brought up the car and finance loans. A real looming disaster.
I'd love to tell BNP Paribas to go phuck themselves.
 

Cato

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We'll end up eating ourselves, and probably not just in a literal sense
Well, hopefully it wont come to that(!) but it is going to require some solution, that may, shock horror, involve a bit of 'moral hazard' for the little people - limited debt forgiveness.
 

HarshBuzz

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We'll end up eating ourselves, and probably not just in a literal sense
I bags Cowen

he'd keep a family of four going through the winter
 

Cato

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MattM

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This is a real financial problem impacting real people.

This is the crux to Ireland's problems.

These are the people in arrears, many many more are just getting by.
 

Black Cat

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I would like to know what percentage of those in arrears are holiday homes or buy to let properties - nothing should be done to save them - greed shouldn't be rewarded
 

Cato

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I would like to know what percentage of those in arrears are holiday homes or buy to let properties - nothing should be done to save them - greed shouldn't be rewarded
Agreed, but that is still going to cause problems for the banks when those loans go bad, and the banks problems will become our problem.

THe courts are about to get quite busy.
 

Anorakphobia

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I would have expected these figures to have been far worse.
Sentiment in the last three months has been as bad as any time in my lifetime yet arrears went from 4.6% of mortgages to 5.1%.

There is also one giant gorilla in the room.
Many people who can afford to pay at present are simply choosing not to.
This also means that anyone who genuinely cannot afford to pay is probably in the figure already.
There is no stigma to debt right now, hell in some quarters its nearly a badge of honour.

Please don't think I am delighted with the above, there is a lot of pain and human suffering behind these figures but relatively speaking i'd have feared a far worse figure.
 

Cato

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I would have expected these figures to have been far worse.
Sentiment in the last three months has been as bad as any time in my lifetime yet arrears went from 4.6% of mortgages to 5.1%.

There is also one giant gorilla in the room.
Many people who can afford to pay at present are simply choosing not to.
This also means that anyone who genuinely cannot afford to pay is probably in the figure already.
There is no stigma to debt right now, hell in some quarters its nearly a badge of honour.

Please don't think I am delighted with the above, there is a lot of pain and human suffering behind these figures but relatively speaking i'd have feared a far worse figure.
It is only going to get worse. Are the people who've switched to interest only with their banks included in these figures?
 
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Going by the average a quarter and considering the budget measures will push people to the limits, you can expect that to be about nearly 50,000 mortgages in arrears by Q2 2011.

Q3 2009 Number of Mortages in 90days+ arrears : 26,271
Q4 2009 Number of Mortages in 90days+ arrears : 28,603 (2,332 increase from Q3)
Q1 2010 Number of Mortages in 90days+ arrears : 32,321 (3,718 increase from Q4)
Q2 2010 Number of Mortages in 90days+ arrears : 36,438 (4,117 increase from Q1)
Q2 2010 Number of Mortages in 90days+ arrears : 40,472 (4,034 increase from Q2)
 

rockofcashel

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I would have expected these figures to have been far worse.
Sentiment in the last three months has been as bad as any time in my lifetime yet arrears went from 4.6% of mortgages to 5.1%.

There is also one giant gorilla in the room.
Many people who can afford to pay at present are simply choosing not to.
This also means that anyone who genuinely cannot afford to pay is probably in the figure already.
There is no stigma to debt right now, hell in some quarters its nearly a badge of honour.

Please don't think I am delighted with the above, there is a lot of pain and human suffering behind these figures but relatively speaking i'd have feared a far worse figure.
Depends Anorak.. are these the figures of people who simply haven't paid anything at all for the past 3 months, or do they take into account people who are on interest only/mortgage holidays/rescheduled payments etc...

I also remember, that last time I saw the figures, it was around 38,000, so in a few months, it has increased by over 10% again

Take into account the likliehood that those who are still paying their mortgages at the moment, are likely to be working, and next months Budget will impact on their ability to pay their mortgages, the possibility in the near future of rising interest rates and a property tax... and you have a hell of a snowball rolling down a hill, which is starting to build up huge momentum before the inevitable avalanche

Finally, when (not if), the ECB/IMF get involved, they will be pumping money into Ireland, which will go straight into the banking system...

Now, most Irish people honestly don't understand how important a functioning banking system is to an economy.. no matter what they say... and these are the people who will get mega pee'd off when they get mortgage notices from the banks, while the banks seem to get away scot free ... when people stop paying the banks in those circumstances.. then the crap will really hit the fan
 


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