I would like to inform you of the actions we have taken as a means to implement real change for those in arrears. The mortgage arrears crisis is a human crisis, that is keeping thousands of families in a state of fear and distress, and which is acting as a drag on our economy. It is now time to confront it.
Up to now, there were only two solutions to mortgage arrears: forbearance or foreclosure. Labour has strongly supported the forbearance policy, insisting that families should where at all possible stay in their homes.
People cannot, however, stay in Limbo forever – we now need to see solutions put forward other than the simple choice between forbearance and foreclosure. The Keane Report on Mortgage Arrears contains proposals for a set of targeted and tailored measures that will provide new options for families that find themselves in distress.
The targeted interventions include:
- Reform to the bankruptcy law and the introduction of a non-judicial debt settlement process to strengthen the hand of the borrower
- At least 100 mortgage advisors to help home-owners who will be making difficult decisions, and to level the playing field with the banks. The banks will pay for this service.
- Two new mortgage-to-rent schemes, one involving housing associations and one involving Local Authorities
- A ‘split mortgage’ scheme that will divide a mortgage into what a person can reasonably be expected to buy, and the residual that will be ‘warehoused’.
I look forward to when these proposals are legislated, which should be done urgently, in order to offer practical, meaningful supports to those in mortgage arrears.
If you would like to get in touch with me about this, please do not hesitate to contact me on 01 618 3280 or email john.lyons@oir.ie
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