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The myth that people are "losing their houses": They did not own them in the first place!


Bobcolebrooke

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The myth that people are "losing their houses": They did not own them in the first place!

I know many people who are worried about losing their houses or indeed have told me they have lost "their investment property"

What they fail to acknowledge is that the property was never theirs as most of them had 100% or near 100% mortgage finance on the properties.

A sense of entitlement developed just because they managed to get a mortgage they never could really afford. Now just because they cannot afford the mortgage, or have decided they cannot afford the mortgage, they want to keep the property, or to get a huge discount on it.

These people were fooling themselves in the first place to think they owned property. What they had was an obligation to service debt repayments for the life of their loans at the end of which the security for the loan would become their property.

This State cannot afford to be picking up the debts of failed property investors. Many people are making a conscious decision to simply default and walk away from their debts, expecting taxpayers to pay their debts for them.

There was a time when people saved 25% of the cost of a house as a deposit before they "bought a home". At the peak of the boom many "ought a home on 100% finance and had the mortgage topped up with the price of a car and a wedding.

At the height of the boom people bragged not about how much their home has risen in value but about how much their House had risen in value! Now when the going gets tough emotive terms like Home come into play. When will the whinging about "losing a home stop"?
 

Taxi Driver

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I think the myth is that there are repossessions in Ireland. There were only 600 repossessions in Ireland last year and two-thirds of those were voluntary surrenders.
 

Burnout

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I have a life.
Fact is a lot of people 'rose above their station' and felt that they too could become global property developers because they had a job of any sort in Ireland. We had more helicopters per capita than some larger countries and more Mercs per head than Stuttgart. Where did they get those notions from? the advice they got to ...buy high sell higher was total nonsense and not many spoke loudly if at all against it. Where were Fianna Gael and Labour on this point?

It really is hard to swallow when we are all paying but we all did not 'party'. However we will eventually have to fix the problem as we are been swallowed up in debt and unemployment which affects us all. Some people should just leave the buildings that they did not ever own and be housed elsewhere. We have to move on or we are all in the chit...forever.
 

joemac67

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Nov 20, 2012
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I think the myth is that there are repossessions in Ireland. There were only 600 repossessions in Ireland last year and two-thirds of those were voluntary surrenders.
Why was that then ? , because the banks and the government are can kicking as they know to deal with the real level of mortgage default would swamp the banks and most likely the country as well .Just how long this can continue is the real question .
 

bob3367

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If this is the case, then the banks should take them back, with no strings attached and allow them to take the financial hit....

What a stupid thread.
 

Mad as Fish

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These people were fooling themselves in the first place to think they owned property. What they had was an obligation to service debt repayments for the life of their loans at the end of which the security for the loan would become their property.

That's not quite how the banks painted it whilst they wheel barrowed the money into the office and stuffed it in to the hapless borrower's pockets.
 

Analyzer

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Feb 14, 2011
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Try explaining that to revenue when you refuse to pay property tax! As far as they are concerned its your property.
It is going to get very interesting when the banks are forced to pay Anglo Bondholder Bailout Levy (Residential Property category) on houses that they own.....

A case of one part of the state system throwing money at another part of the state system, in order to pay for the costs of propping up the first part of the state system.
 

Northtipp

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If this is the case, then the banks should take them back, with no strings attached and allow them to take the financial hit....

What a stupid thread.
Absolutely . Most people would gladly hand investment properties back at this stage.
 

emulator

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Why was that then ? , because the banks and the government are can kicking as they know to deal with the real level of mortgage default would swamp the banks and most likely the country as well .Just how long this can continue is the real question .
We'll be getting into second (or third) bailout territory if they started doing that. Mortgage arrears are only going one way with more taxes coming in, cost of living rising and wages lowering. If banks don't start taking them back, people will just hand them back and start renting. There will be an exponential rise in arrears that will force the Government to get it's head out of the sand....
 

Analyzer

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The people do not own their houses.

But they do own the banks that own their houses.

What a phucking pharce.
 

Mad as Fish

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It is going to get very interesting when the banks are forced to pay Anglo Bondholder Bailout Levy (Residential Property category) on houses that they own.....

A case of one part of the state system throwing money at another part of the state system, in order to pay for the costs of propping up the first part of the state system.
I'm getting a headache already just trying to think about where that leads us! :confused:
 

statsman

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Feb 25, 2011
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Absolutely . Most people would gladly hand investment properties back at this stage.
Most people would happily not pay off their debts? Hold the front page.
 
S

simeongrimes

Fact is a lot of people 'rose above their station' and felt that they too could become global property developers because they had a job of any sort in Ireland. We had more helicopters per capita than some larger countries and more Mercs per head than Stuttgart. Where did they get those notions from?
There is nothing unique about Ireland. What you describe is exactly what happens when too much credit is fed into an economy at too low an interest rate. If you are working in a bank in a situation like that you are under pressure to lend money. You will always find some fool to take it. I remember getting letters "pre-approving" me for loans I couldn't afford to pay back. I was lucky because I had already learned my lesson about credit at that stage so I binned them. But those letters were going out like confetti. They were bound to catch some people. That's what the clever people in marking designed them to do.

The borrowers were fools but the lenders were knaves.
 
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Burnout

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I have a life.
Interesting what Sweden did, ruled that you now, apres crash only are liable for 110% of the current property value ie: bought 420'000 value now 120'000 = you owe 132'000. Still if you have no job and cannot pay you are still in dire straits till the.....eh 450'000 green job shoots arrive above ground.
 

Analyzer

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Feb 14, 2011
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Can we give the Anglo Bondholders a ghost estate in Leitrim ?

And then tax them Anglo Bondholder Bailout Tax (Residential Property category) ?
 
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