Debt help service saves 3,300 homes
More than 3,300 households in serious mortgage arrears have been spared the loss of their homes with the help of the Abhaile scheme.
The State-funded support service says it helped broker permanent or trial solutions for these households over the past two years.
It is currently working to secure similar outcomes for a further 6,148 households who are also in serious default and facing the threat of repossession.
In total, 11,695 individual borrowers, representing more than 10,000 households, received financial and/or legal advice through the scheme between July 2016 and June 2018.
Around 16%, or 1,868 borrowers, stopped engaging with the service after initial consultations so their outcome is unknown, but there is a policy of following up with such people to encourage them to re-engage.
Just 3% surrendered their homes to their lenders, in some cases to trade down to a less expensive property, while 0.5% had their homes repossessed. More than 7,000 of those who were assisted were in arrears for two years or more.
Abhaile services are jointly funded by the Departments of Justice and Social Protection and are delivered through the Money Advice and Budgeting Service (MABS), the Insolvency Service of Ireland, the Legal Aid Board, and the Citizens Information Board at a cost of just under €6m a year.
Justice Minister Charlie Flanagan said the service was delivering real solutions for borrowers in arrears.
“I am particularly pleased to see that Abhaile is delivering results, even for borrowers in the more challenging levels of arrears, who are those most at risk,” he said.
“Abhaile is undoubtedly making an important contribution to the drop in arrears for this worst-affected category and is helping those who fell into arrears due to loss of earnings, illness or family separation.”
Abhaile services are free to the user and confidential. To be eligible, applicants need to be in arrears, insolvent and facing repossession proceedings or the threat of such proceedings. Only people living in properties considered far in excess of their needs are excluded.
Over the first two years, the take-up rate exceeded expectations by several thousand. The majority of those who sought help received vouchers to engage a personal insolvency practitioner, while others were assisted by a dedicated mortgage arrears advisor.
Around 2,500 were given vouchers to consult a solicitor, almost 4,800 were assisted in court by an Abhaile duty solicitor and more than 7,000 were supported in court by a court mentor.
Most recent Central Bank statistics show some 64,510 mortgages on family homes are in arrears, with around 28,000 of those in arrears for two years or more.
Minister for Social Protection Regina Doherty urged anyone in mortgage arrears to make contact with the service.
“I would encourage anybody who is afraid of losing their home due to mortgage arrears to take the first step and call MABS and seek assistance,” she said.
The MABS helpline runs Monday-Friday, 9am-8pm, on 0761 07 2000, and further details can be found at mabs.ie.
