Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

File photo of Justice Minsiter Alan Shatter Sam Boal/Photocall Ireland
Repossession

Shatter said Troika deal will not increase repossessions

The Minister for Justice said the right for banks to repossess a home when a person defaults already exists in mortgage contracts.

MINISTER FOR JUSTICE Alan Shatter has said the government’s agreement in the latest Troika review to close a loophole preventing banks from repossessing homes will not result in more evictions.

Shatter said all mortgages contain “remedies that may be exercised” by banks if a person defaults on their mortgage and that repossession is therefore an existing contractual right.

“I want to stress that this issue is not about facilitating wide-scale repossessions by banks and other lending institutions,” he said.

He said it is about correcting an unintended consequence of reforming legislation enacted in 2009 that restricts lending institutions in certain cases from asserting their repossession rights.

Shatter stressed that under the Personal Insolvency Bill, once an arrangement is made, a person should not be required to leave their home.

“However, this significant protection is necessarily tempered to take into account that the debtor may not wish to continue to occupy the house or the costs of the debtor continuing to reside therein are disproportionately large,” he said.

“This provision is of particular importance as it can assist those with unsustainable debt and their creditors to conclude realistic and common sense arrangements that can facilitate the debtor continuing to reside in his or her family home,” he added.

Shatter said the government is aware of the real and significant difficulties some mortgage holders are facing and is committed to advancing appropriate measures to assist those mortgage holders who are experiencing real and genuine difficulty.

Related: Government agrees to close loophole preventing banks repossessing homes>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
37
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.