Case study First arrears 11 years ago, 13 adjournments before order for possession granted...

Discussion in 'Mortgage arrears & negative equity case studies' started by Brendan Burgess, Mar 13, 2017.

  1. Brendan Burgess

    Brendan Burgess Founder

    An interesting report in the Indo which illustrates how difficult it is for a lender to get an order for possession.

    Businessman who got €317k mortgage in 2005 owes €352k now, as judge orders repossession
    • Took out loan in 2005
    • First arrears 2006
    • Arrears now €79,000
    • Hasn't even managed to pay the interest
    • Kept promising to clear the arrears with a tax refund which never came
    • 13 adjournments
    • House now let out
    • 6 months stay on execution or order
    However, he does appear to be paying €1,200 per month now.

    With a mortgage of €352k , the interest would be around €12,000 a year, and he seems to be paying this.

    The house is probably worth €200k, so if he could be tied to paying €12,000 a year, the bank would be better off taking that rather than selling the house. But I suppose they just need to close their file.

  2. demoivre

    demoivre Frequent Poster

    He'd probably buy more time than 6 months if he appealed it to the High court !!
  3. Brendan Burgess

    Brendan Burgess Founder

    I have just discovered that I was in court for an earlier hearing of this case back in April 2016. It was adjourned at that time to July as he was due a tax refund of €70k which would substantially clear the arrears. Bank of Ireland had wanted to proceed at that stage.

    He was also talking about a Section 22 adjournment to appoint a PIP. It seemed like a delaying tactic to me at the time. He could have appointed a PIP and got a Protection Order before the court hearing. He had recently appointed Anthony Joyce solicitors to represent him.
    He appeared from my notes to have 10 employees.

    He was paying €1,200 a month, but the scheduled payment was €1,500 a month.

    He had 5 children, the youngest having been born just before Xmas.

    According to the most recent report, he is now living with his mother.