What on earth did the borrower think they were doing , borrowing that kind of money?
Well to answer your queries and hopefully get some advice for the person it was a business loan and Credit Unions give out business loans and I think mortgages too. In fact I think every institution in Ireland was handing out money like no tomorrow for the last 10 years. It was not secured on any asset but they knew that a house existed at that time with plenty of equity plus a person with a good track record and loan would have been given based on other dealings with the same family. Some businesses don't have assets when they start off. It was a smaller loan at the beginning to start off the business but ran into trouble and tried to trade their way out of it but crisis has decimated the business. The reason the loan was given was because the credit union thought the business made sense. In relation to a judgement mortgage I think that is the way they will go but I was wondering if there are any other options they could take. Such as what Ontour said, put it to 0 interest and then the capital could be repaid. After all they are doing it for developers etc so why not the little people.How on earth did they get that loan? Whatever about banks lending , Credit Unions should never lend that kind of money to someone with no assets. That is absolutely criminal.
What on earth did the borrower think they were doing , borrowing that kind of money?
No, CU cannot write it off but equally, there is nothing worthwhile to attach a judgment to. If the house is in negative equity.
The one thing I will say though is the CU should get a judgment and should register it as a judgment mortgage. I have seen debtors circumstances improve with the passage of time.
mf
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