Madness of Court Orders

[Masterp]

I have been advised to contact you directly to keep you updated what is happening in the Courts in specific regards to property in arrears.

In Trim Court in a recent sitting a homeowner was forced by the Registrar and Solicitor for EBS to consider by Court Order the Mortgage to Rent Scheme and discuss same with Meath MABS. Present in Court was an officer of MABS. Now, at no point did anyone in Court make anyone else aware that the Mortgage to Rent Scheme would not be eligible as the homeowner advised in Court he had an interest in a second property. I ask you, how can this be the case, with the Court, the Solicitor for the EBS and MABS all being present being fully aware of the Law and a homeowner being ordered to pursue something that he cannot actually do.

The particular homeowner finds his mortgage is now 95K above what he borrowed in the first place. Why, excessive interest rates, as you say, highest in Europe, the illegal legal fees that they throw on top (not agreed by the Courts, hence illegal), over inflated insurances, etc.

The mortgage to rent scheme is in itself a joke, as it is not what it implies. When you hear the title you think your rental payments will be used to pay off your mortgage but not so, your property is taken over by a housing corporation that buys your house at a discount, and then sells your house back to you at market rates in 5 years, after this they have had a good additional profit from your property. In five years though, you will still be blacklisted, so good luck in getting a mortgage, and not to mention your age in 5 years time.

Personal mortgages are not being offered the considerable write downs that businesses have been, (by AIB Bank, owners of EBS), and other less publicised ones. So many of these businesses simply stopped paying the mortgages.

Can you please address how the genuine people who are struggling can expect to actually get out of the mess they are in.

 

[Brendan Burgess]

Hi Master P

I agree with your general view that Mortgage to Rent is not a good idea. I have suggested a Mortgage Assistance Payment which would be far more suitable. I will write more about it in another post, but in short, if someone would otherwise qualify for Housing Assistance Payment based on their housing needs and their income, then they should be given help with their mortgage.

I have been in Trim Court a few times, and the Registrar there was quite good. Giving a borrower an adjournment subject to them doing something is a very good idea. I wouldn't expect the Registrar to be familiar with the details of MtR. Nor would I expect the solicitor for EBS to know. But MABS and the borrower should have known and pointed it out.

The particular homeowner finds his mortgage is now 95K above what he borrowed in the first place. Why, excessive interest rates, as you say, highest in Europe, the illegal legal fees that they throw on top (not agreed by the Courts, hence illegal), over inflated insurances, etc.

Eh, because he has paid very little if anything for the last few years.

While the high interest rates have contributed to it, most borrowers, even those in great difficulties, have paid at least the interest.

How much fees were added? I would suspect that they are a small part of the overall arrears which must be huge.

You are joking about the "over inflated insurance" I presume. This borrower had no obligation to buy his insurance from EBS and should have shopped around to get the cheapest deal.

Please give us the actual figures so we can make a more informed assessment of this case:

Date mortgage drawn down
Amount of mortgage
Balance now
Current arrears
Recent payment history
The borrower's income and circumstances.

And tell us also about the "interest in the second property".

Brendan