Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 350: To ask the Minister for the Environment, Heritage and Local Government the advice made available by his Department to homeowners facing repossession; and if he will make a statement on the matter. [8506/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
Link to this: Individually | In context

The Government has put in place a range of measures to provide advice and financial supports to households who may experience difficulties in meeting their mortgage payments.

The Mortgage Interest Supplement, administered by the Community Welfare Service of the Health Service Executive on behalf of the Department of Social and Family Affairs, provides direct financial assistance where the mortgage relates to a person's sole place of residence. People in debt or in danger of getting into debt can also avail of the services of the Money Advice and Budgeting Service (MABS). This is a national, free, confidential and independent service.

It is a particular priority of the Government to ensure as much as possible that difficulties in relation to mortgage arrears do not result in legal proceedings for home repossession. Home repossession should be, and generally is, the last resort for the lender and the preferred method of dealing with arrears cases should be early engagement between the borrower and their financial institution.

The finalised recapitalisation scheme announced on 11 February 2009 includes a new code of conduct for Mortgage Arrears, based on the Irish Banking Federation Code of Practice on Mortgage Arrears, which has been issued by the Financial Regulator and came into force on 27 February 2009. The new Code applies to mortgage lending activities to consumers in respect of their principal private residence in the State and is mandatory for all mortgage lenders registered with the Financial Regulator. Under the mortgage arrears code, where a borrower is in difficulty the lender will make every reasonable effort to agree an alternative repayment schedule and will not commence legal action for repossession until after six months from the time arrears first arise.

In addition as part of their recapitalisation scheme, the two banks concerned, AIB and Bank of Ireland, will not commence court proceedings for repossession of a principal private residence until after 12 months of arrears appearing, where the customer continues to co-operate with the bank.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 351: To ask the Minister for the Environment, Heritage and Local Government the advice made available by his Department to homeowners in complexes with management companies regarding their legal rights in relation to these companies; and if he will make a statement on the matter. [8507/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
Link to this: Individually | In context

Property management companies are generally constituted under the Companies Acts and are required to operate in compliance with company law, which falls under the area of responsibility of the Minister for Enterprise, Trade and Employment. My Department has no function in the provision of advice with regard to these companies. The rights and obligations of property owners in relation to management companies arise from company law provisions and also from private contracts entered into by them in the purchase of their property. In this regard, the guidance published by the Office of the Director of Corporate Enforcement — Company Law Handbook on Residential Property Owners' Management Companies — provides a useful resource for both directors and members of management companies. The guidance can be accessed through its website: www.odce.ie.

In addition, the National Consumer Agency has published an information booklet entitled Property Management Companies and You which includes advice on matters such as service charges and management agents. This booklet is available on the National Consumer Agency's website www.consumerconnect.ie.