'Heartless' moves to seize homes

on 01/03/2013 00:00:00

Under pressure from the troika, the Government is set to close a legal loophole which has been stalling the repossession process.



Banks will then be allowed to push ahead with legal action to seize homes and buy-to-let properties after the changes - expected by the end of the month.



Government sources say the laws need to be brought in on top of personal insolvency legislation due to pressure from the troika.



Taoiseach Enda Kenny told his TDs and senators the mortgage issue was the next big challenge facing the Government. He said he would outline a plan for dealing with distressed mortgages shortly.



Finance Minister Michael Noonan told the Dáil the Government was working with banks to ensure customers received the most appropriate help they can with the prime aim of keeping families in their homes.



Sinn Féin's finance spokesman Pearse Doherty said making repossessions easier was "heartless".



"Any move by the Government to give the green light to banks on family home repossessions would be heartless and economically irresponsible... Repossessions are a failure and should not form any part of the solution.



"Debt writedowns must be the backbone of any plan to deal with mortgage distress. That is simply the reality. There are many people who are simply not able to contribute to the real economy as all of their disposable income is used to service their mortgage. They will not be able to cope with a property tax or water charges. Taking their home from them is not the answer. They need a debt writedown in order to be able to function and contribute to our economy."