"confirmed write-off of mortgage shortfall"

[Brendan Burgess]

"Confirmed Mortgage write-off gives hope"

From Sunday Independent 10 July

Outlining the situation that faced his clients, Mr Joyce said: "They could not keep up with the repayments. They then left the home and intended to post the keys back to the bank. However, they called into my office with a letter stating that if they handed the keys back to the bank, they could be pursued for the balance of the mortgage.


"I advised them not to sign the letter, to put their property on the market and we would liaise with the bank. The bank was close to issuing repossession proceedings but eventually we achieved a buyer."


A copy of the agreement letter from Stepstone to the couple, released by Mr Joyce to this newspaper with their consent, states: "We wish to confirm that we will accept the sum of €154,950 as full and final settlement of all amounts owed by Mr X and Ms Y, on condition that funds are received on or before February 16, 2011."

 

[Brendan Burgess]

I am not sure that this story deserved the front page headline which it received.

A sub-prime lender, who is no longer doing business in Ireland, with no hope of recovering the loan agreed in writing not to pursue the balance.

Stepstone have done this before as they are anxious to wind down their Irish mortgage book as quickly as possible.

All the other lenders also will agree in some cases not to pursue the shortfall, but I have never heard of any of them putting it in writing.