March 2010 – Good news for hard pressed mortgage holders as repossession rate slows - Minister Brady

Kildare North Fianna Fail TD, and Minister of State Áine Brady has welcomed the report from the Financial Regulator that has revealed that the number of mortgage holders facing repossession orders has dropped and increasing numbers of cases are being settled before homeowners lose their houses.

"The number of mortgage holders ending up in court facing repossession orders has decreased from 481 between June and July 2009 to 233 in the last quarter of the year."

"Almost half the cases that went to court were settled when homeowners renegotiated with their lenders and came to an agreement regarding the term or rate of repayment of the mortgage."

"While the number of householders in arrears has increased, the rate of increase is slowing down."

"In September 2009 3.3% of mortgage accounts were in arrears and in December the figure was 3.3%. According to the Financial Regulator these figures indicate a slowing down of the rate of increase in mortgage default."

 "It is vital that when homeowners do face difficulties in repaying their mortgage due to changing financial circumstances that they contact their lender immediately."

"I am heartened to see the amount of cases that were settled allowing families to hold on to their homes. It indicates to me that lenders are beginning to realise that there is no value in repossessing a family home, particularly at a time property prices are so low."

"The Government is responding to the issue to home repossessions in a proactive way. Just
last week the Minister for Finance announced the formation of an Expert Group to work with the Government on responses to the challenges of mortgage arrears and personal debt."

"Financial institutions covered by the Government guarantee reported only 9 repossessions in the last 3 months of 2009. The remaining 22 repossession were with other lenders."

"The Government's Code of Conduct on Mortgage Arrears was amended on 17^th of February to require lenders to wait 12 months from the time arrears first arise before applying to the courts to commence repossession orders. In addition lenders cannot seek repossession until every reasonable effort has been made to agree an alternative repayment schedule with the borrower."

"Keeping families in their home is a Government priority and this report shows we are heading in the right direction," concluded Minister Brady.

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