Mortgage Debt Write Off - Yes or No ?

[ang]

Mortgage debt relief - Stephen Donnelly TD:-

This is Stephen’s recent submission to the expert group in the Department of Finance on mortgages. It outlines a comprehensive mortgage arrears resolution process, involving burden-sharing with the banks, support and protection for borrowers, reformed bankruptcy procedures and mechanisms to minimise “moral hazard”.

http://www.stephendonnelly.ie/featur...rtgage-crisis/

[Baron von Biffo]

Mortgage debt relief - Stephen Donnelly TD:-


http://www.stephendonnelly.ie/featur...rtgage-crisis/

Donnelly's half-baked scheme got a mention in this thread* which deals at some length with the consequences of large scale mortgage forgiveness.

The most noteworthy thing about his little scheme is that it doesn't stoop to the vulgarity of saying where the money would come from to fund it.




*Please, please, please don't merge that thread with this one. Merging threads more than a few posts long makes a disjointed, confusing mess that's impossible to follow.

[morticia]

It's tragi-comic to see the way that governments and institutions are trying to solve the problem by putting money into the banks, out of peoples' pockets.

And it gets worse. Apparently some international body in charge of deciding what counts as a default (ISDA, international swaps and derivatives assoc), in order to permit triggering of credit default swaps, has come out and said that the Greeks not paying their entire state payroll wouldn't count as a default, but one missed bond coupon to an international investor would.

Disgraceful.

[eamo]

And it gets worse. Apparently some international body in charge of deciding what counts as a default (ISDA, international swaps and derivatives assoc), in order to permit triggering of credit default swaps, has come out and said that the Greeks not paying their entire state payroll wouldn't count as a default, but one missed bond coupon to an international investor would.

Disgraceful.

The natural out come of runaway capitalism. The lunatics have taken over the asylum .
and yes, merging threads destroys continuity.

[monty cardigan]

Interesting article in the examiner from Bill Hobbs here where he writes of the risk of a borrowers run.

A bit far fetched perhaps, but given the poll results it seems to reflect a growing anger.

[Kev Bar]

Interesting article in the examiner from Bill Hobbs here where he writes of the risk of a borrowers run.

A bit far fetched perhaps, but given the poll results it seems to reflect a growing anger.

That's good.
Captures how I felt walking out of a meeting with the EBS yesterday.

[Ephilant]

Through a friend of a friend, who deals with personal debt here in Greece, and particularly mortgage problems, we got this bit of information.

How the TROIKA proposes to tackle mortgage debt.
Greece is the first of the bailout countries where the Troika is now insisting that mortgage debt must be tackled. So far, there was an understanding that houses with a debt of less than 200,000 (which is a lot in Greece) could not be sold out from underneath whoever "owned" the place. The banks were forced to sit down with these people and work out a system of interest only payment, repossesion with rent-back to occupier, in some cases even doubling of the mortgage term to 99 years etc. Under no circumstances were the owners to be evicted or the houses sold.
According to the info now becoming available, the TROIKA is now insisiting that as of 01/01/2013, the banks put houses with any kind of debt on them under the hammer. No mercy, no exceptions.
Our informant estimates that this will immediately affect some 100,000 house owners, and as the cuts and growing unemployment start biting even harder, this could easily grow to 3 or 400,000 by the end of the year.

Because of what she does, and her knowledge of the business, our friend knows the market, and she is adament that international real estate speculators agents are already waiting in the wings to start "investing" in cheap property. Expectations are that houses morgaged for up to 250,000 could be sold for as little as 25,000, to "the right"people...

It would seem that Greece is once again a testing ground to see how this can work, if "the right" people do indeed get in on the act, and how to implement it in the other bailout countries...

[Baron von Biffo]

A family that would like to see mortgage debt written off.

http://www.breakingnews.ie/ireland/m...ad-571386.html

[Kev Bar]

A family that would like to see mortgage debt written off.

http://www.breakingnews.ie/ireland/m...ad-571386.html

He can borrow a tent from the crew in Killiney.

Or retreat to Portugal.

[Baron von Biffo]

Amazing how the prospect of debt forgiveness legislation can drive behaviour.

"The numbers three months or more in arrears here are three times higher than in Spain, even though that country has higher unemployment."

http://www.independent.ie/irish-news...-29091601.html