More than 6,400 new proceedings were initiated to repossess properties at Circuit Courts
in 11 months last year, according to figures supplied by the Phoenix Project.
The charity, which offers free advice and support to distressed borrowers, collated figures from 26 Circuit Courts around the country.
It found more than 6,400 civil bills issued for possession of property, the majority of which involved homes, for 11 months up to the end of November last year.
Chief executive of the Phoenix Project William Prior said he was very concerned the coming year would see a huge increase in those figures.
‘Starving themselves’ He also said he
was very worried that people were “starving themselves and not heating their homes” in order to pay their mortgages and stave off repossession. A serious cold snap this winter could result in the death of one or more distressed homeowners.
“I went into houses over Christmas giving hampers donated to us . . . the houses were freezing, people were trying to pay their mortgages,” said Mr Prior.
In one home, a “professional woman” had nothing in the fridge and no fuel to heat her home. She was wearing gloves, Mr Prior said, and when he gave her the hamper she burst into tears. She had been too proud to call St Vincent de Paul, so he called on her behalf and they delivered coal and briquettes to her.
Chairman of the organisation John McGrath warned that despite a perceived upturn in the economy, peoples’ financial problems had not gone away. “There is a perception that a rise in property prices will lift all boats, but if you can’t pay your mortgage that is of no value to you,” he said.
Over the edge He also said the organisation was concerned banks w
ould pursue more homes as they emerge from negative equity and that an increase in interest rates could push more homeowners over the edge.
Tom O'Reilly, financial advisor to the group, highlighted Central Bank figures that show the long-term solution for 49,000 people was deemed to be loss of home ownership through repossession, sale or surrender.
He predicted a dramatic increase in repossession proceedings this year.
Mr O’Reilly also said the charity had seen a huge increase in legal queries to its helpline since August of last year. “The banks have examined the situation and are moving to legal action much more quickly now,” he said.
Barrister Paul Comiskey O’Keeffe said the majority of repossession cases coming before Circuit Court county registrars involved lay litigants, who had no legal advice.
They are confronted with “pro-forma” documents filed by lenders that “tick all the boxes”, but don’t reflect “the full truth”, he said. He would like to see cases being stayed, or paused, in court while homeowners are working through resolution processes.
“If someone goes to a personal insolvency practitioner, proceedings can be stayed; the same should apply to resolution providers,” he said.
