Judge noted term of restructured loan would likely have exceeded debtor’s lifespan
House value: €180k - a 4 bedroom house in Limerick
Woman's age: 69
The woman appears to have little income but the proposal was that her children would help her pay €57 a month for two years and €238 a month after that until the woman was 98
The Court correctly rejected this PIA.
But the astonishing thing is that the Personal Insolvency Practitioner and his legal advisors thought that there was a good chance of getting this approved.
Why does she need a PIA at all?
Other options worth exploring
1) She could have anticipated this problem 10 years ago and tried to pay the mortgage
The children could have helped out.
She is living on her own in a 4 bed house - she could have taken in tenants.
2) Trade down
She is living on her own in a 4 bed house.
3) A lifetime mortgage
Spry Finance will lend her 24% or €43k.
The kids could come with €30k.
4) The kids could buy the house from her for €72,500
The children may be able to get a mortgage or a credit union loan for €72,500
But no. Much better to avail of our outrageous legislation and try to impose a solution on the lender and as a result, 300,000 other mortgage holders will pay for her mortgage many times over in terms of higher mortgage rates.