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