On the horizon loomed the Irish mortgage crisis

10.11.2010 09:32
Articles about real estate | On the horizon loomed the Irish mortgage crisis Experts call the mortgage market in the country "time bomb" because the government measures will not solve the problem, but only postpone it for a certain period of time.

Over the past four years the volume of mortgage debt in the country increased by 2,5 times and reached ? 113 billion in the nine months to July this year, the number of borrowers who are at least 90 days past due on mortgage payments rose from 26 thousand to 36 thousand The share of mortgage debtors of the total number of borrowers rose from 3,3% to 4,6%.

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Even more alarming sign is the price decline, which leads to a situation where the remaining payments on a mortgage loan exceeds the value of the property. In these cases, the borrower may not be interested in having to return the loan and the bank, in turn, seizing property and selling it at auction, was rescued less than the amount of loans granted.

According to estimates by David Duffy from the Institute of Social and Economic Research, Dublin, the number of such loans could reach the end of the year from 200 to 350 thousand, according to The Washington Post.

Last year, authorities are obliged to mortgage lenders to wait six months before you can withdraw a property from the debtor. In February of this year waiting period was extended to 12 months. In addition, if a borrower loses a job, unemployment is usually enough for it to pay the mortgage.

However, as stated analyst and former banker Peter Mathews, the government does not prevent mortgage crisis, but simply slows it, and sooner or later the situation will worsen.
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