Central Bank study claims Irish legal system bears blame for long-term mortgage arrears
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A new study by the Central Bank of Ireland has suggested the Irish legal system is to blame for the persistence of long-term mortgage arrears a decade after the financial crisis.
The Long-Term Mortgage Arrears in Ireland report by Terry O’Malley compares repossession proceedings in Ireland to other countries.
It states: “Why do these long-term arrears cases continue to persist? A first answer is that the current legal system makes it difficult for banks to repossess collateral to resolve these loans and so LTMA are the product of a long repossession process.
“Long-term arrears are indeed rare internationally, where repossession proceedings are usually shorter.”
There are currently around 29,000 residential mortgages in long-term arrears, comprising 41 per cent of all arrears cases.
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