Michael McGrath (Cork South Central, Fianna Fail)
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Question 146: To ask the Minister for Finance if he will provide details of the number of individual residential properties in the ownership of each covered institution; the way these properties are being managed at present; for each institution, if he will provide a breakdown of the properties between those repossessed, voluntarily, surrendered or secured by another means; and if he will make a statement on the matter. [27140/11]

Michael Noonan (Limerick City, Fine Gael)
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The number of individual residential properties presently in the ownership of the covered institutions is 807. This information is provided on an aggregate basis for the covered banks due to the commercial sensitivities of the data. The information provided is the most up to date available from each of the covered institutions, with all data less than one month old. The table below includes data for home loans and residential investment properties.

The breakdown of properties is as follows:

AIB has informed me that all repossessed properties are managed by the property section in the Arrears Support Unit (ASU) pending sale and that the ASU uses external management companies for the security, upkeep and maintenance of these properties.

BoI has informed me that once a property has been repossessed (either by Possession Order through the courts, voluntary surrender or abandonment by the customer), it:

* Obtains two independent valuations.

* Obtains buildings insurance cover.

* Carries out any essential works/repairs required to sell the property.

* Appoints an estate agent to sell the property on the Bank's behalf for the maximum realisable value.

* Manages the marketing strategy and maintain the property until the sale is completed.

EBS has informed me that repossessed properties and voluntarily surrendered properties are secured, insured and then independently valued before being placed for sale on the open market. For those properties that are secured by another means, which EBS refer to as abandoned property, these are firstly secured and insured, upon EBS being satisfied that the property has, in fact, been abandoned. EBS will then progress via the courts to formally take ownership of the properties. For those properties that are secured by means of the appointment of a Receiver, these properties are also secured and insured by the Receiver. Where the properties are let, the Receiver takes over the management of the letting and arranges for the collection of rents etc. These properties are ultimately independently valued and then sold.

Anglo Irish Bank, on behalf of INBS, has informed me that properties in possession are currently managed within the Arrears Support Unit, the process of receiving a property into possession involves ensuring that the property is secure and having a property inspection report carried out which will identify any issues with the property that require attention/remedial work. When a property is received into possession by the bank it is placed on the market for sale. The bank is currently involved in a tender process the aim of which is to identify a single source supplier for this service which will further enhance the process in terms of sales and asset management.

Irish Life & Permanent has informed me that it has a team of people managing the portfolio of Properties in Possession whose primary focus is to ensure that when a property is taken in to possession it is;

* secured

* prepared for sale (which entails ensuring clear marketable title)

* brought to market for sale as quickly as possible via an approved panel of Auctioneers