A package of measures designed to help people in mortgage arrears on their homes will be brought to cabinet on Tuesday by Tánaiste Frances Fitzgerald.
Among the measures being proposed is the imminent rollout of a new scheme to provide independent financial and legal advice and support to people at risk of losing their homes due to mortgage arrears.
The package will cost €15 million over next three years, and will form part of a framework of Government decisions to address the challenges of housing and homelessness.
The package is designed to honour the commitments in the Programme for Partnership Government for action to help keep families in their homes by identifying sustainable solutions in mortgage arrears cases.
The main elements of the package include :
* Setting up a new national service for those in home mortgage arrears to provide support and advice for assessing their financial difficulties, identifying and explaining the most sustainable solutions, and help in negotiating solutions.
* This service will include the imminent rollout of the Government’s new scheme to provide help and independent expert advice to those in serious mortgage arrears to help them identify sustainable solutions for returning to solvency - with priority to staying in their homes, where that is possible.
* Funding for a well-targeted information campaign, to ensure that those in serious mortgage arrears and at risk of repossession are aware of the Government supports available, and feel able to engage in putting a sustainable solution in place,
* Changes to court rules to allow repossession cases to be heard by specialist judges and, subject to legal advice, to be heard in private where the borrower requests.
A Government source said the keystone of the new national service will be the scheme of aid and advice for home mortgage arrears.
Insolvency
He added that under the terms of the scheme a borrower in serious mortgage arrears who is at risk of losing their home will be able to access free advice and help from a solicitor, a personal insolvency practitioner, or an accountant, under a voucher system.
The Money Advice and Budgeting Service (MABS), which has extensive expertise and experience in helping people in financial difficulties, will act as the Government gateway to advice and help under the new Scheme.
MABS has developed a network of dedicated mortgage arrears (DMA) advisers, working in MABS offices across the country, and a national helpline for the scheme.
A person who contacts MABS for help with mortgage arrears will be able to meet an adviser face to face, or simply phone the helpline.
MABS will quickly direct them to the sort of adviser best able to help in their individual situation - this may be an advisor on mortgage arrears, a personal insolvency practitioner, or an accountant.
The scheme has been in preparation for months by the Departments of Justice and Equality and of Social Protection, and will be operated by MABS working with the Insolvency Service of Ireland, the Legal Aid Board and the Citizens’ Information Board. The Scheme is ready to roll out imminently, with panels of legal and financial advisers already in place.
