Families must get alternative home before repossession considered- Naughten

In Families by Denis Naughten

Move to block families becoming homeless to be considered by Dail

Denis Naughten TD will attempt to stop families being thrown onto the street if their homes are repossessed with a proposed amendment to legislation in the Dail on Wednesday.

Almost four family homes are being repossessed or surrendered each day at present, with many of these families then battling homelessness to secure some type of temporary accommodation.

To stop families being left on the street, Denis Naughten will table an amendment which will allow the Courts to put a stay on any repossession of a family home until alternative accommodation is secured by the family in question.

He explained: “The proposal introduces a new safeguard which will mean that in any repossession proceedings in respect of a borrower’s principal private residence or family home, the court may adjourn the proceedings or make the order with a stay. This would be until either the court is satisfied that the family has means to meet their housing need that would be created by the order for possession or is satisfied by appropriate evidence from the relevant local housing authority that the housing need created by the order for possession can be met from the means of the said Council.

“The greatest fear of many Irish people at present is the prospect of losing their family home. This is compounded by the current housing/rental crisis which can leave many families fighting the prospect of homelessness. While this measure will not solve either problem it is an additional tool to deal with the current crisis and is an important one

“With more distressed mortgages ending in repossession, family homes are being sold off to investors for less than many people can actually afford to pay if offered reasonable resolutions. Some of these home owners are then finding themselves homeless and dependent on already overflowing housing lists, compounding the problem for all those awaiting housing.

“I hope that the Government will act in a responsible manner and accept my proposal and at least provide some small safety net to those families who are about to lose their home,” concluded Denis Naughten.ENDS

Editors note: wording of Report Stage Amendment to the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 to be discussed on Wednesdaymorning  in Dail Eireann
New Section:

9. The Land and Conveyancing Law Reform Act 2013, is hereby amended by inserting the following after section 2:

3. (1) This section applies to land which is the principal private residence of—

(a) the mortgagor of the land concerned, or

(b) a person without whose consent a conveyance of that land would be void by reason of—

(i) the Family Home Protection Act 1976 , or

(ii) the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 .(2) In any proceedings brought by a mortgagee seeking an order for possession of land to which the mortgage relates and which land is land to which this section applies, the court, without prejudice to any other power which a court may have, may—(a) of its own motion, if it considers it appropriate to do so,

(b) on application being made to the court by a relevant person and, having regard to the matters specified in subsection (3), if it considers it appropriate to do so,decline to make an order for possession of land to which this section relates, adjourn the proceedings or make the order with a stay until, either the Court is satisfied that the private means of the mortgagor enable him/her to meet any housing need that would be created by the order for possession or is satisfied by appropriate evidence from the relevant local housing authority that the housing need created by the order for possession can be met from the means of the said housing authority.(3) The court in considering an application under subsection (2)(b) shall have regard to such matters as it considers appropriate and in particular shall have regard to the following:

(a) whether the mortgagor has participated in any process relating to mortgage arrears operated by the mortgagee concerned which has been approved or required by the Central Bank of Ireland and which process relates to the land the subject of the mortgage;(b) whether the mortgagor has made any payments to the mortgagee in respect of monies advanced on foot of or secured by the mortgage in the 12 months immediately preceding the application and, if so, the amount of any such payments, the number and frequency of such payments, and the proportion which the amounts paid bear to the amount of any regular payments which the mortgagor was required to make under the terms of the mortgage or any associated loan agreement;

(c) the conduct of the parties to the mortgage in any attempt to find a resolution to the issue of dealing with arrears of payments due on foot of the mortgage.
– Denis Naughten