Key Post The High Court repossession process explained

Brendan Burgess

Brendan Burgess

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I am trying to get my head around the High Court repossesion procedure and practice. When I get this, I will get my head around the Circuit Court. I couldn't find a step by step guide online anywhere so I have written one myself.

This relates only to ordinary Legal mortgages and not to Judgement Mortgages or Equitable Mortgages.

I appreciate any corrections to steps or terminology

Step 1 - The lender notifies the borrower of the arrears and asks them to pay them

Step 2 - The lender issues a formal demand for repayment.

(If the borrower engages with the lender, the lender cannot engage in Step 3 until 12 months after the arrears first arise).

Step 3- The lender issues a "summons" to the borrower and notifies them of a hearing before the Master of the High Court (Edward Honohan?)

Step 4 - The Master asks both sides the story. He can

  • Reject the application entirely
  • Adjourn the application
  • Refer it to the Chancery Court for a hearing of the case.
In most cases, he seems to adjourn the application.

Step 5 - Chancery Court Hearing
The judge will hear the case and may


  • Reject the application entirely
  • Adjourn the application
  • Grant an order for repossession
If he grants an order for repossession, the judge will usually place a stay of execution for 3 or 6 months.

Step 6 - Perfecting the Repossession Order
After the stay expires, the lender perfects the order in the High Court office.

Step 7 - The Lender notifies the borrower and orders them to leave.

Step 8 - If the borrower does not leave, the lender asks the Sheriff to execute the order.


I don't understand the terminology used on www.keepingyourhome.ie

Where does the "well charging order " come in?
 
The practice

Many applications are for abandoned property and the lender needs a Court Order for the repossession, which they get relatively easily.

In practice the Master will adjourn most other cases on the initial application whether or not the borrower shows up.

If the borrower shows up in the Chancery Court, the judge will give the borrower an adjournment to sort matters out.

If there is no alternative to a repossession order, the judge usually grants it, but puts a long stay on it.

Even when the lender gets a perfected repossession order, they will not seize the house if the borrower continues to make some effort. But, of course, the borrower could seize the house at any time.
 
I think that the information used on www.keepingyourhome.ie may refer to Judgement mortgages only. (This confused me)

If a Credit Card company cannot get payment, they seek a judgement mortgage.

Normally, they just register that against the property and leave it there.

However, if they want to force the sale of the property, they must apply for a Well charging order and order for sale.

But this has nothing to do with Legal Mortgages
 
From what I can gather there will be no more new cases going to the High Court.

The circuit court procedure is a fast track for the banks to get possession orders. Also they cost very little to get.
 
Hi bond

It's the other way around. The High Court is the fast track. But that is a good point that the Circuit Court is more relevant now.
 
I think a Well Charging Order comes into play when the lender does not hold a Legal Mortgage but only an Equitable Mortgage (deposit of deeds without a formal Deed of Mortgage) or perhaps a Solicitors Undertaking which i think only creates an Equitable Mortgage until such time as the Legal Mortgage has been completed.
 
Brendan said:
Hi bond

It's the other way around. The High Court is the fast track. But that is a good point that the Circuit Court is more relevant now.
Click to expand...
Brendan, I don't understand how the high court was a fast track? The circuit court and particularly the county registrars are a rubber stamp for bank operations. If you don't show in the circuit, wham you loose. It is not like the master of the High Court who will make allowances and adjourn. With a registrar you could be out on the street after the first hearing.
 
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