Fine Gael scheme would stave off repossessions — Phelan
As thousands of families run into mortgage problems and the latest High Court data shows that as many as 100 repossession applications are being heard each week, Fine Gael senator John Paul Phelan has called for Fine Gael’s home owner support scheme to be implemented now.
“Reports suggest that at least 1,000 families are looking for State assistance for their mortgage repayments each month. However large numbers of homeowners are not qualifying for Government assistance.
“I welcome the Irish Banking Federation’s move to give homeowners more time to address mortgage arrears. But the extended moratorium announced by the major lenders is unlikely to have a significant impact on homeowners as it does not cover the subprime mortgages sector, the sector with the highest risk.”
Senator Phelan added that Fine Gael’s homeowner support scheme should be implemented as a priority and that this scheme would help to avert widespread repossessions across the country.
“Under the scheme, NAMA would take an equity share in a property, after it had negotiated a write down in the outstanding debt with the lender. The homeowner would then manage the remainder of the debt, while paying a rental fee to NAMA. In the long-term, the owner would be able to buy back NAMA’s share of the property.”
Senator Phelan believes that the lethal combination of negative equity, widespread unemployment, and the deep recession have already afflicted thousands of homeowners. And more and more families across the country are living in constant fear of repossession.
“Many are already under intolerable strain – without this extra fear and burden. This already intolerable situation is only likely to get far worse when interest rates rise again, and interest payments shoot up. That’s why Fine Gael’s scheme must be implemented as soon as possible,” Senator Phelan urged.
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