Many hardworking Americans are faced with watching their financial situation plummet and the waves of debt rise. The past few years have been rough on home owners and many have been faced with tough decision to keep their homes out of foreclosure. However, Americans aren’t the only ones in danger of drowning under their mortgages; the housing market in Ireland has been experiencing rough waters as well.
In recent months there have been reports of a blanket debt forgiveness solution to be offered up to struggling home owners in Ireland. Unfortunately, homeowners should not get their hopes up as Financial Minister Michael Noonan says that granting a blanket debt forgiveness solution is “simply not a realistic option.”
What The Future Holds
Many home owners had high hopes after the Allied Ireland Bank proposed a program that would offer help to overburdened homeowners. AIB suggested they could write off a portion of the mortgage debt in exchange for partial ownership share of the home. Although the program sounded good in theory, government officials continue to question how the program would be regulated to prevent fraud and abuse of the system.
Despite rumors of a “magic bullet”, or one-size-fits-all solution, Noonan says that the best solutions for home owners will come from a “case-by-case basis”. Noonan pointed out the fact that exporting and GDP markets show signs of improvement, suggesting there was no need for consumer panic. However, many home owners continue to worry about the fate of their mortgages. A decision is expected to be reached by the end of September.