My mother sold her house to move closer to her family 10 years ago. I took out a mortgage with Bank of Scotland to make up the shortfall so the property is in my name. It is an interest only mortgage. A few years ago I lost you job and fell €5000 into arrears. When the bank started threatening to repossess I borrowed money from my sister and cleared the arrears. The bank however still appointed a receiver. Three years later we have made all repayments on time but the receiver has given my mother notice to vacate - the week before Christmas. She's 77 and in a terrible state. Can they do this? Please help, I'm desperate!!
NOT in arrears but bank appointed receiver 3 years ago
- Thread starter CarolC
- Start date
Sophrosyne
Registered User
- Messages
- 1,538
Did you have any contact from the bank from the time you cleared the arrears to the time a receiver was appointed?
D
Descart
Guest
CarolC
Let me get this straight,
You were in arrears of 5000 euro and a receiver was appointed by the BOS, you then cleared your arrears but the receiver remained, you continued to make all payments for the next three years and never defaulted again on the mortgage loan! Is this correct ?
Did you make the mortgage payments to the bank or to the receiver ?, this is important. If you made all payments to the bank directly and the bank accepted same you may have a defence. Secondly, why is the receiver only now attempting to enforce the bank's security over the property, some three years after their appointment. Finally, did you clear all the arrears prior to the appointment of the receiver under the deed of appointment, if you did, this appointment may be contested in court, as on the date of appointment you were not in arrears. The Irish courts would not take kindly to the actions of BOS in this particular situation if the facts are as you have stated. On the face of it it appears to be a bizarre situation. Can you provide answers to the questions posed within this post and supply more details please.
Let me get this straight,
You were in arrears of 5000 euro and a receiver was appointed by the BOS, you then cleared your arrears but the receiver remained, you continued to make all payments for the next three years and never defaulted again on the mortgage loan! Is this correct ?
Did you make the mortgage payments to the bank or to the receiver ?, this is important. If you made all payments to the bank directly and the bank accepted same you may have a defence. Secondly, why is the receiver only now attempting to enforce the bank's security over the property, some three years after their appointment. Finally, did you clear all the arrears prior to the appointment of the receiver under the deed of appointment, if you did, this appointment may be contested in court, as on the date of appointment you were not in arrears. The Irish courts would not take kindly to the actions of BOS in this particular situation if the facts are as you have stated. On the face of it it appears to be a bizarre situation. Can you provide answers to the questions posed within this post and supply more details please.
Last edited by a moderator:
Hi, thank you for your reply. I can't remember exactly if the receiver was appointed after the arrears were paid but I think so .it was definitely around the same time. I've paid the bank by direct debit weekly and have never missed a payment since. I'm not sure what other details I can give you. Can the receiver make my mother leave the property?
Brendan Burgess
Founder
- Messages
- 52,046
Hi Carol
Why have you not done anything about this in the last three years?
Depending on your mother's lease, the Receiver has the power to terminate the lease. "Evict" and "before Christmas" are emotive terms. This is 28th August, so it's hardly the week before Xmas.
The key issue here is that BoSI seems to be appointing receivers at the drop of a hat. But that was three years ago.
You should try to refinance the mortgage with another lender, but it's probably not possible now if you have been in arrears.
Why have you not done anything about this in the last three years?
Depending on your mother's lease, the Receiver has the power to terminate the lease. "Evict" and "before Christmas" are emotive terms. This is 28th August, so it's hardly the week before Xmas.
The key issue here is that BoSI seems to be appointing receivers at the drop of a hat. But that was three years ago.
You should try to refinance the mortgage with another lender, but it's probably not possible now if you have been in arrears.
Sophrosyne
Registered User
- Messages
- 1,538
Why was a receiver appointed though?
The arrears were only €5,000 which were subsequently cleared.
Brendan Burgess
Founder
- Messages
- 52,046
Agreed, that it sounds odd and wrong. But the time to deal with it was when the Receiver was appointed not three years later.
Brendan
Brendan
D
Descart
Guest
CarolC,
If, as you have stated, the arrears were cleared before the receiver was appointed and you have not defaulted on your mortgage agreement since, an Irish Court will certainly not evict you. You have the legal defence of legitimate expectation in that you believed, due to the passage of time, that the lender had waived his rights with regard the appointment of the receiver. Indeed you can demonstrate this to the court by the very fact that the receiver did not take any action against you until three years after his appointment and in the interim you have not missed a payment on the mortgage.
Another legal defence is that you were not in arrears at the time the receiver was appointed subject to deed.
Carol, see who appointed the receiver, Bank of Scotland or Bank of Scotland ( Ireland ). This fact can make a whole lot of difference to your Mother's situation. Please reply to this query.
If, as you have stated, the arrears were cleared before the receiver was appointed and you have not defaulted on your mortgage agreement since, an Irish Court will certainly not evict you. You have the legal defence of legitimate expectation in that you believed, due to the passage of time, that the lender had waived his rights with regard the appointment of the receiver. Indeed you can demonstrate this to the court by the very fact that the receiver did not take any action against you until three years after his appointment and in the interim you have not missed a payment on the mortgage.
Another legal defence is that you were not in arrears at the time the receiver was appointed subject to deed.
Carol, see who appointed the receiver, Bank of Scotland or Bank of Scotland ( Ireland ). This fact can make a whole lot of difference to your Mother's situation. Please reply to this query.
Last edited by a moderator:
any update on this.