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THE NUMBER OF mortgage accounts for principal homes in arrears fell for the second consecutive quarter in the final quarter of 2013.
There was also the first decrease in arrears of over 90 days since September 2009, the new figures from the Central Bank show.
The outstanding balance on primary home mortgage accounts in arrears of more than 90 days was €18.2 billion at the end of last year.
Repossession
There were 1,012 properties in the banks’ possession at the beginning of the final quarter in 2013.
During the quarter, 168 properties were taken into possession by lenders, 63 of which were repossessed under a court order, and 105 of which were voluntarily surrendered.
The figures also show:
Investigation
The Irish Mortgage Holders Organisation has said that the new figures show that “there needs to be an urgent investigation by the Central Bank of what banks are classifying as long-term sustainable”.
The IMHO said that the use of arrears capitalisation in 22 per cent of “restructures” along with 11.6 per cent in an “other” category means that “serious questions must be asked”.
The IMHO noted that while there is a reduction in the numbers of those in short term arrears, it alleged there is “a very concerning trend of those in long term arrears being ignored in favour of banks choosing easier arrears cases to solve”.
Of those whose arrears were capitalised, it says the fact that 41.2 per cent have re-defaulted “clearly shows the concern is merited”.
The IMHO described the numbers in long term arrears as “frightening” and showing that “urgent and meaningful intervention is required”.
Meanwhile, Sinn Féin Finance Spokesperson Pearse Doherty TD described the figures as “proof of three years of complete failure by Fine Gael/Labour in tacking the mortgage crisis”.
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