- A Not For Profit body formed to offer a sustainable and fair solution for both borrowers and lenders to the threat posed to Irish social community and economy by distressed home loans.
- Homeoptions provides Irish banks with a real alternative to selling personal home debt to vulture funds and other commercial parties. It offers homeowners realistic and affordable, restructured financial positions and the opportunity to continue living in their homes and the option in the future to buy their property back at a price agreed today.
- Homeoptions also ensures that any gains made through the purchase of home debt are used initially to support the solutions it offers, whilst keeping those gains in Ireland and available in the future for reinvestment in social and affordable housing. Its long-term aim is to support social and affordable housing in Ireland.
To provide a societal solution that is fair to all, by providing homeowners in long-term arrears with alternative solutions and help keep people in homes.
- Homeoptions initial purpose is to purchase family home debt from banks as an alternative to a sale to the vulture funds and subsequently restructure the family’s position in line with our stated ethos.
- It is planned over time to also provide a solution for all debtors who need to settle with a vulture fund on their family home. Debtors need to register their email address on the website www.homeoptions.ie to enable us to keep you up to date with developments.
- We see both the banks and homeowners as customers, in the sense that we feel a duty of care to all parties.
- Irish society is our primary stakeholder, particularly in respect of its need to address non-performing loans, reduce homelessness, and increase social and affordable housing.
- We purchase family home debt and reposition the homeowner into a rental structure that is secured, affordable and sustainable.
- In addition we give the homeowner the opportunity to buy back the property in the future at affordable levels for them.
The board is considering its status and is likely to apply for charitable status over time.
Activities around the management of the properties will be regulated by the PSRA, if required. All rental leases will be RTB registered.
We will acquire the beneficial interest in the debt and on discharge of the loan through our Mortgage-to-Rent-to-Repurchase (MRR) structure we will then own the property, subject to the terms of the structure, making it available for repurchase.
- No. We convert the loan to a tenancy, write off the outstanding debt and reset monthly payments as rent.
- The rent will be affordable with respect to the homeowner’s current and future prospects.
- Yes, they are being converted to our MRR structure.
- They will obtain a long, secured lease with a fixed rent.
- They will have the right to repurchase the property at a price fixed today.
Each homeowner will have a plan created for their future which takes into account many factors such as:
- Other assets
The Homeoptions’ board will set the policies that derive the repurchase price and affordability levels.
It will reset the homeowner’s position to ensure that in the future they can look forward to:
- Sustainable property payments to retirement & beyond; or
- Capable of entering into an “Equity Release” type arrangement in retirement, or
- Downsize to a more affordable property, or
- Avail of other housing schemes on offer.
What happens if the homeowner thinks the plan created by Homeoptions is unfair or they object to any of its terms?
We have an independent review process in place where debtors can have their plan reviewed.
- Our standard lease is five years but this can and will be extended. It is set at five years to allow homeowners to repair their credit records.
- There is an option to repurchase earlier after 24 months.
- The Right to Repurchase is set in line with the lease term.
- The plan agreed at inception will take the homeowner through to retirement so it will have considered this risk and set out mitigants and alternatives.
- If the homeowner cannot find a mortgage or refinance at the end of the initial term, Homeoptions will extend the period beyond 5 years and reset the rent according to the family’s circumstances. In line with our Ethos we will not see any family homeless nor cause unnecessary stress, provided individuals have engaged with us and adhered to the agreed conditions of their lease and option.
The current period that it takes to repair credit records.
Age consideration will be a key element of the plan created for each debtor.
- We believe that we have a solution for all debtors. In certain cases, individuals will need to access ICare or other housing body schemes and we will liaise with those organisations to ensure a safe transition.
- Our Ethos dictates that we will see no one homeless who engages with us in a meaningful way.
It will vary on a portfolio basis. Price paid for the portfolio will have no bearing on the plan put in place for each debtor. The plan will focus on the value of the home today, its suitability and the family's affordability levels.
No. Plans will be based on affordability and the value of the home today.
We will ensure that the homeowner obtains access to a suitable property to meet their needs. We will not agree a plan that might make any homeowner homeless.
Homeoptions converts the homeowner to our MRR scheme and as a result we are indifferent to the payment history. We look at the homeowner as our tenant and focus on their ability to pay the rent and avail of the repurchase opportunity.
If rental payments are missed and the tenant has not engaged fully with us, then two things may happen:
- They may be asked to leave the property similar to other defaulting tenants, and
- The Option to Repurchase the property may expire.
Yes, a big advantage of the MRR scheme is that they pay rent and if, at inception or in the future, they have difficulty paying the rent, they can apply for HAP or any other assisted payment scheme available.
Homeoptions is a Not for Profit organisation and through its scheme is focused on sustainable and fair solutions for borrowers and lenders. It is not focused on returning shareholder value or profits.
We look at each debtor and take into account all relevant circumstances. A plan is produced with the primary objective of keeping the debtor and their family in the home and they are given an opportunity to repurchase the home in the future at an affordable level.
It’s a Mortgage to Rent to Repurchase (MRR) scheme.
This and other credit matters will be dealt with as part of each debtor’s individual plan.
The board has employed Quartech Solutions as its servicer and asset manager. Quartech currently operates a rent to buy structure (https://quartech.ie) and its management has extensive experience of banking, loan sales &, purchases and property management.
Quartech operates a rent to buy structure and commenced commercial operations in 2018. The company was started to help individuals and families take back financial control of their affairs with respect to property needs. The full offering can be seen at https://quartech.ie.
- As this initiative will help people who are beyond the starter home phase, the board has determined that any surplus will be reinvested into an Affordable Rent-to-Buy scheme which will help young people looking for their first home.
- In time the board may consider other good causes with respect to housing if it can be shown to be for the common good and in line with its ethos.
- Homeoptions is a Not for Profit organisation which wants to assist homeowners in arrears return to a normalised position. We have no profit agenda and debtors’ welfare and housing is our key concern. In the event a person does not engage with us, we will have no alternative but to enforce for the common good.
- In these cases, we will ensure that all adult occupants of the home have been served with the facts before any action is initiated and appropriate authorities are informed, if necessary.
Yes. Homeoptions will adhere to all disclosure requirements relating to its legal status.
- The persons carrying out the review process will be independent to Homeoptions staff and their agents. The review process will be reported to the board regardless of its outcome.
- The board will be required to sign off on any enforcement after the independent review process. The board is staffed with debt advocates.
Homeoptions will not pay more than the collateral value of the portfolio.
Will you be writing off people’s debt? How is this fair to others who restructured without any debt write off and to taxpayers generally?
- The homeowner has lost ownership of their home and now has to achieve a right to repurchase it.
- Each case will be different but we are structured to help people recover and not to provide a lifetime subsidy or a once-off windfall.
Repurchase options will very much depend upon each debtor’s current circumstances, but will be based on the value of their home at the date the arrangement is agreed, its suitability and their affordability.
That will very much depend upon the homeowner and their level of engagement. We will be resourced to react in a timely fashion as most borrowers, in our experience, would wish to resolve this quickly for their own reasons.
We are resourced to handle all Irish distressed PDH sales.
We are actively engaging with all Irish banks and have yet to establish the exact level of sales.
At this stage we do not see any advantage in becoming an Approved Housing body. We will clearly keep the position under review but our market is beyond the Social & Affordable solutions that housing bodies focus on.
- The MRR structure incentivises individuals and families to look after their home. Under our T&Cs they will need to carry out all maintenance and repairs. If the option holder enhances the value of the property by work carried out, that value accrues to them through the fixed price in the right to repurchase arrangement.
- Quartech Solutions, our servicer will manage the property services required in the ordinary course of business.
We will source funding from a number of sources including ethical financing.
Yes. We are in the process of seeking funds from a number of sources and have received positive feedback and support for the initiative. Engagement with funds deploying Ethical Funding is well advanced.
Homeoptions has employed the services of Quartech Solutions.
Quartech Solutions is our primary servicer and they will utilise the services of other providers when and if required.