Group urges State to buy unsustainable mortgages

Thousands of people drowning in “unsustainable” mortgage debt could have their properties bought by the State and turned into local authority units in a bid to help them stay in their homes, under a proposal put to Department of Finance officials today.  

The Irish Mortgage Holders Organisation set out the proposal today at a meeting aiming to address the growing repossessions crisis.

IMHO chief David Hall said while the plan would cost the State tens of millions of euro it was the only sensible way to tackle a problem that would only escalate further over the coming months, and that the cost could be reduced by resulting rent allowance savings.