Mortgages Arrears Nearly  Double Says Crowe

Sinn Féin representative Seán Crowe TD has said that yet another increase in the number of individuals and families  in morgage  arrears is another strong indicator  that the government’s policy is failing.

Deputy Seán Crowe stated:

“This latest increase must act as a wake- up call to the Government and is another strong indicator that their policy in this area is not working.

“The number in March 2011 in arrears  was 49,609. The situation clearly got worse and rose in September 2012 to   91,358 accounts (11.5 per cent)  according to the Central Bank. Some 94,488 or 11.9% of principal dwelling houses (PDH) were in arrears of over 90 days at end-December. This continuing increase after two years of Fine Gael and Labour government shows that their policy is clearly failing a big proportion of house owners.

“Today’s figures show that there are now 185,882 households in mortgage distress.That is a whopping 23.5% of all domestic mortgages.

“A shocking figure for any government  but we were informed this week that they will not exempt those in arrears from their  new Family Home Tax. This extra tax will inevitably tip those morgage holders already in arrears further into distress and push a greater number of  those struggling to pay into arrears.

“Two years of a Fine Gael and Labour government has seen the number in arrears of over 90 days nearly double.The Personal Insolvency Act  that was talked up by Government will do nothing to force the banks and other lenders to face the morgage distress problem and  leaves them with the final say.

“When this the Bill was published Sinn Féin argued that it was essential that the proposed Insolvency Service be independent and that a more humane approach to individuals in bankruptcy was needed.

“It has been a  bitter disappointment to the tens of thousands of families that are in mortgage distress, that the Bill provides for the banks having complete power in relation to personal insolvency arrangements.

“Sinn Féin submitted a number of amendments and had called for an Independent Agency empowered to enforce legally binding settlements on debtor and creditor. The only other option open to people in serious arrears is bankruptcy.

“While we welcomed the shortening of the bankruptcy term from 12 to three years, we are mindful that anyone entering bankruptcy couldl lose all their assets, including their home.

“Our position has been consistent.

“People should be helped to remain living in their homes and that the newly established Independent Agency examine in a case-by-case basis, how to actually make a mortgage debt sustainable.

“This weeks figures from the Central Bank of those in morgage distress confirm that the individuals and families in morgage arrears is growing highlights   the need for a new approach including the appointment of an Independent body with the power to compel banks to come up with fair and equitable deals including write downs for those in morgage distress.”