CASH-STRAPPED homeowners in mortgage arrears could benefit from reduced repayments and other measures designed to protect the family home under proposals in the revised programme for government.
Under the proposals, modelled on measures by President Barack Obama in the US, the Government would subsidise lower interest rates to reduce monthly payments for those most at risk of having their homes repossessed.
The details have yet to be worked out, but the programme contains a commitment by the Government to expand its mortgage-support measures “with reference to the measures adopted in other jurisdictions”.
In the US, more than 500,000 homeowners have had their loan repayments lowered on a trial basis as part of Mr Obama’s home-retention programme.
Green Party officials claimed the proposals for protecting the family home sparked considerable interest yesterday from homeowners facing difficulties.
The programme says banks and other lenders should show greater flexibility in seeking to avoid foreclosures by reducing rates, applying longer maturity dates or rolling up outstanding interest.
It also suggests that banks could take equity in debt-laden households or even ownership and then operate a leaseback arrangement, with rent payments coming off the loan. It also proposes the establishment of a central debt enforcement office to remove as many proceedings of this type from the courts as possible.
Flac (Free Legal Advice Centres) said the measures gave hope that the Government would now take seriously the urgent need for reform of the laws on debt.
