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MABS: Mortgage Arrears Mechanism Won't Work


Malbekh

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Apr 30, 2009
Messages
3,032
Fascinating and worthwhile survey by MABS.

They have conducted a survey of 6000 householders in arrears and found that the majority are in a far older age category that previously thought: 41-65 contrary to the perceived wisdom of first-time buyers in their 30's.

How then, when these householders have finished with their split mortgages etc, are they going to be able to pay the balance as they will have retired? To mention nothing about the fact that a lot of them can't afford pensions...

More here:

Plans to end mortgage misery for thousands won't work, says MABS - Independent.ie


'MABS Clients and Mortgage Arrears', by Colette Bennett, is due to be published in a few days.
 
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DuineEile

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Aug 29, 2010
Messages
14,939
Fascinating and worthwhile survey by MABS.

They have conducted a survey of 6000 householders in arrears and found that the majority are in a far older age category that previously thought: 41-65 contrary to the perceived wisdom of first-time buyers in their 30's.

How then, when these householders have finished with their split mortgages etc, are they going to be able to pay the balance as they will have retired? To mention nothing about the fact that a lot of them can't afford pensions...

More here:

Plans to end mortgage misery for thousands won't work, says MABS - Independent.ie


'MABS Clients and Mortgage Arrears', by Colette Bennett, is due to be published in a few days.

Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


Mortality and limited productive life is one reason why kicking the can down the road is no solution.

Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


D
 
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Malbekh

Well-known member
Joined
Apr 30, 2009
Messages
3,032
Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


Mortality and limited productive life is one reason why kicking the can down the road is no solution.

Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


D
I don't think people understand the ramifications of what this means. It would appear that the majority of the 100,000 mortgage arrears have no chance of being paid off in the lifetime of the debtor. So either it will have to be written off by the banks (unlikely), deducted from the estate on death (more likely), or Japanese style generational mortgages.....
 

sic transit

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Jan 30, 2008
Messages
25,579
Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


Mortality and limited productive life is one reason why kicking the can down the road is no solution.

Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


D
These were people who were legally compus mentis. There was no no coercion involved and caveat emptor is a very harsh mistress. While I have every sympathy for people who do find themselves in this situation they still need to acknowledge that they are partly to blame for it. As regards the article my impression is that the split mortgage approach is one that they believe will not work for many borrowers.
 

eoghanacht

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Joined
Apr 18, 2006
Messages
33,340
Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


Mortality and limited productive life is one reason why kicking the can down the road is no solution.

Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


D

I love this and you would have been the one laughing at me because I didn't fall for the bullsh!t and lumber myself with a 100% mortgage for shoe box in co Laois. Telling me my rent money was dead money

:lol:
 

Howya

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Feb 29, 2012
Messages
1,690
I think the banks are desperately hoping that property market will rise sufficiently so that when these borrowers get to 65 they can sell and trade down to a smaller house and use the (potential) gain to clear the loan.
 

Expose the lot of them

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Jan 15, 2009
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I wonder how many in the 41 - 60 age group re-mortgaged to provide deposits to assist their children's house purchases ?
 

Potatoeman

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Dec 6, 2010
Messages
1,827
Slowly but surely, the fact that everyone is six years older that when the crisis started is coming home to roost.


Mortality and limited productive life is one reason why kicking the can down the road is no solution.

Lots of people were locked out of the market by the outrageous price levels. They are the lucky ones (or as they like to describe themselves, the financially astute ones who saw it all coming).


D
People didn’t bother to do a financial plan when they were making the decision. They were keeping prudent people out of the housing market by paying rising prices. When you take out a mortgage you have to factor in interest rates, job changes and personal decisions. Many didn’t even plan for the cost of kids or their education.
 

IbrahaimMohamad

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Feb 5, 2013
Messages
4,226
I think the banks are desperately hoping that property market will rise sufficiently so that when these borrowers get to 65 they can sell and trade down to a smaller house and use the (potential) gain to clear the loan.
This trade down nonsense ia about as daft as the Trade Up nonsense!
 

IbrahaimMohamad

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Feb 5, 2013
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4,226
There have been many victims of "Ahernism" Ireland has been dependent on borrowed money since his reign began.
 

Sync

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Aug 27, 2009
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Can't wait for the report (These things really are like porn), but the article doesn't specify that the mortgage owners polled have only one mortgage. If you're 50 and have1 mortgage and are struggling then I accept the plan may not be valid. If you're 50 and you're struggling with 2 mortgages then that's a different kettler of piranha.
 

DuineEile

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Aug 29, 2010
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14,939
I love this and you would have been the one laughing at me because I didn't fall for the bullsh!t and lumber myself with a 100% mortgage for shoe box in co Laois. Telling me my rent money was dead money

:lol:

Perhaps you are one of the very elusive financially savvy people (and not one of those who wasn't in the market for a home, or was in the market but couldn't get a loan).

I doubt it though. I have asked people on another thread to prove it, by a post here or elsewhere prior to Feb 07, or some other proof. No one has.

I wouldn't have been laughing at you about rent being dead money. I would have been concerned for you. I am actually not nasty like a lot of people on here. I mostly react to nastiness.


D
 

IbrahaimMohamad

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Feb 5, 2013
Messages
4,226
Can't wait for the report (These things really are like porn), but the article doesn't specify that the mortgage owners polled have only one mortgage. If you're 50 and have1 mortgage and are struggling then I accept the plan may not be valid. If you're 50 and you're struggling with 2 mortgages then that's a different kettler of piranha.
All the Financial turmoil in Europe can only end in higher inflation. That said the practice of lending 40 year terms on mortgages was folly. An awful lot can go wrong for some one in 40 years such as health, divorce, bereavement, skills becoming obsolete, disability, excess property supply, delapidation, structural problems, etc.

Of course the 40 year term was designed to maximise the price the mugs could pay for their property.

We need a solution like EU backed mortgage bonds to provide funding at 1% to bubble borrowers. Terms could be extended to 60 years, just like the Land Acts provided a 68 year term for the purchase of most of Ireland's Farm Land.

Everyone could manage repayments at suitable rates and terms eliminating the stream of defaults.
 

DuineEile

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Aug 29, 2010
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People didn’t bother to do a financial plan when they were making the decision. They were keeping prudent people out of the housing market by paying rising prices. When you take out a mortgage you have to factor in interest rates, job changes and personal decisions. Many didn’t even plan for the cost of kids or their education.
"best practice" advice was that prices were only normalising to what they should have been. Ireland artificially depressed for centuries etc.

You state it now, as if it was all so clear.


It was as clear as mud at the time.



D
 

eoghanacht

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Apr 18, 2006
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33,340
Perhaps you are one of the very elusive financially savvy people (and not one of those who wasn't in the market for a home, or was in the market but couldn't get a loan).
Not at all, one doesn't have to be a financial expert in order to spot a bad deal.

I doubt it though. I have asked people on another thread to prove it, by a post here or elsewhere prior to Feb 07, or some other proof. No one has.
Well although it says I have a join date for the forum of April '06. I didn't start posting here until '08. I had forgotten I even had joined until I heard about the place again.

I'm not gloating but I just hate disingenuous crap like that you posted.

We all didn't fall for it.

I wouldn't have been laughing at you about rent being dead money. I would have been concerned for you. I am actually not nasty like a lot of people on here. I mostly react to nastiness.


D
You would have been concerned for me? For not lumbering myself with 300k 40 year Mortgage for a house in Mountrath? Or for renting?
 

DuineEile

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People didn’t bother to do a financial plan when they were making the decision. They were keeping prudent people out of the housing market by paying rising prices. When you take out a mortgage you have to factor in interest rates, job changes and personal decisions. Many didn’t even plan for the cost of kids or their education.
Went into a pub on Saturday. A pint of Guinness was €4.80.

I offered him €3.41. Told him that prices had risen unsustainably since 2003. I was gobsmacked when he told me it was 2013 and I had to pay 2013 prices.

I really needed a pint so I paid him €4.80.

D
 

eoghanacht

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Apr 18, 2006
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I remember buying a second hand car back in the winter of 05 and asking why it was so cheap compared to others I had been looking at, nissan almera, the guy at the garage said they were awash with good trade in's as a lot of retired Dubs were selling hovels in Kimmage etc for hundreds of thousands, ten or twenty times what they had paid for them in the 60's and moving to brand new apartments in Kildare etc.
 

Mad as Fish

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Dec 6, 2012
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24,449
I don't think people understand the ramifications of what this means. It would appear that the majority of the 100,000 mortgage arrears have no chance of being paid off in the lifetime of the debtor. So either it will have to be written off by the banks (unlikely), deducted from the estate on death (more likely), or Japanese style generational mortgages.....
Don't forget inflation, which is of course going to make us all free with one bound.
 
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