‘Non-recourse’ mortgages could be the answer

THE banks are the effective owners of many unsold residential developments, with the related loans to developers forming part of the impaired loan portfolios which are to be taken over by NAMA.

Many of these properties are in desirable locations but cannot be sold currently, even with significant reductions in the asking prices.

This is because of the natural caution of potential buyers who don’t want to risk purchasing in a falling market without any guarantee that we are at, or near, the bottom.