Sir, – If the banks are responsible for the property bubble as a consequence of their earlier flawed credit policy, why, when a property is dispossessed, does the bank not simply take over the property and leave the ex-owner debt-free? Am I right in thinking that this is the US practice?
The bank could usefully develop a rental property management business, and give the ex-owner the right to stay on at a negotiated rent, with option to re-purchase. The current situation, where a citizen is dispossessed carrying a “negative-equity” debt, the amount of which is a consequence of earlier banking policy, is a travesty of justice. – Yours, etc,
ROY H W JOHNSTON,
Rathmines Park, Dublin 6.