NEW YORK BOSTON |#Popular: Irish Celebrity Gossip Irish in US Politics Irish Festivals Irish Roots Irish Entertainment Offbeat Irish

Home Page > News > New law could forgive large amounts of mortgage debt in Ireland

New law could forgive large amounts of mortgage debt in Ireland

Banks may be forced to forgive much debt

JAMES O'SHEA,

IrishCentral Staff Writer

Published Wednesday, October 10, 2012, 7:53 AM

Updated Wednesday, October 10, 2012, 10:12 AM

Larger Text

E-mail

13 Comments

New law may forgive large amounts of mortgage debt in Ireland

Photo by Google Images

In a bold move by the Irish government, Irish banks will be told to forgive substantial amounts of mortgage payments by borrowers.

The new law will lower monthly payments for tens of thousands of Irish mortgage holders.

“For the banks, where there are losses, they have to be recognized,” Alan Shatter, Ireland’s justice minister, who has sponsored the new law, called the Personal Insolvency Bill.

He told The New York Times: “This legislation gives homeowners hope for their future.”

The Irish foreclosure rate is very high but unlike in the U.S, there have been very few evictions which are seen as socially unacceptable and have proven very unpopular.

The new laws seek to end the continuing stalemate by creating new consumer debt and bankruptcy law.

The Irish attempt to reset mortgage payment debt will be watched closely elsewhere in other European countries with similar problems.

Nster.com

E-mail

13 Comments

See all comments

bunkerhill | Oct 26, 2012, 05:42 PM EDT

I think that is wonderful news. The Irish are a hard working responsible people and deserve a good life. What it also wonderful is that the US Govt is looking into our crooked banks and hopefullY EU is looking into London's crooked banks along with LIBOR. This international, outwardly respectable mafia attempted to enslave decent people without firing a shot. I saw on US TV that there is approx 123 Trillion dollars hidden away in Swiss Banks, along with the British West Indies and the Cayman Islands. Are our American politicians addressing this? Is the EU addressing it? Another estimation is that the international mafias have about 90 billion squirreled away. But it's not over yet and people around the world are not going to be slaves.

Report abuse

irishcoffeekid | Oct 11, 2012, 11:00 PM EDT

i'll believe it when i see it......

Report abuse

Searlit | Oct 11, 2012, 07:40 PM EDT

Frustrating as H*ll, isn't it? It seems like the government is finally responding to the problem, even though they've been very late.

Report abuse

seamus60 | Oct 11, 2012, 09:37 AM EDT

Searlit. Its so annoying that the ordinary man and woman, not endeavouring to live beyond their means are now slaves to negative equity brought about mostly by the bankers. As always the first to be bailed out, it was never that big a gamble for them. They should be persued for mis-sold products such as mortages etc in par with PPI`s. The Govs excuse for the bail out was that banks would have the funds nessacery to continue lending to small business`s etc. They haven`t, putting ever so many more former employees of small business`s as struggling to make payments. With every penny they have being spent on trying to pay for a property only worth half of what they owe, they have no surplus to aid the recovery to more of the same small business`s that are going down the tubes. The chain has to be broken. But who`s got the balls to do it ? Free up the small mans cash and he will let it grow through his local economy. Hardly rocket science.

Report abuse

Searlit | Oct 11, 2012, 08:48 AM EDT

@seamus 60, perfectly said.

Report abuse

seamus60 | Oct 11, 2012, 08:32 AM EDT

No need for new laws that will only make more fat cats . Simply tell the banks before they get any more of the peoples money, they must enter into the revaluation of properties within range and alter payments accordingly. Exclude second properties, business ventures and social jumpers. They should never have recieved a cent until agreeing to share the hurt.

Report abuse

Searlit | Oct 10, 2012, 07:23 PM EDT

They're still going to pay, it's just reducing the payment amount, so they can afford to pay it.

Report abuse

BrianO | Oct 10, 2012, 01:31 PM EDT

Great make a contract agree to pay then bail, now you get to bail and keep the asset, sounds like theft to me.

Report abuse

Searlit | Oct 10, 2012, 12:32 PM EDT

@ rukiddingme, did the article say that this extension of mortgages, applied to second homes? If it did I missed it.

Report abuse

rukiddingme | Oct 10, 2012, 11:57 AM EDT

Great, so all the people who had to have second homes and bigger bedrooms get off. When are people going to take responsibility for there actions. Poor peole and those mean banks.... amazing how nobody compained when they were making all the money!

Report abuse

Searlit | Oct 10, 2012, 11:18 AM EDT

Finally, some relief for people who want to stay in their homes. No Irish, whether living in Ireland or abroad wants to hear that horrible word eviliction.

Report abuse

TisEyerish | Oct 10, 2012, 11:14 AM EDT

I was so glad to read of this relief for Irish homeowners and have been wishing since the onset of the bank disaster in the US that measures like this would be taken here. The banks caused the problem, yet they have suffered very little because of it. It makes no sense to me to see houses that once held families now vacant. It would be in the best interest of the banks, one would think, to be getting some return on the money they loaned rather than "punishing" their customers for the debacle that the banks, themselves, caused.

Report abuse

Portia777 | Oct 10, 2012, 10:16 AM EDT

In truth the bank could never have created money out of thin air- as a debt - without service users looking for loans for property.

Report abuse