Oliver Flynn write down of €7 million

The properties were all sold and the bulk of the debts was the defecit.
The secured debtor will be getting €1900 out of a €3200 salary from a 59 year old man.
How much more do you think he could have done?
 
The properties were all sold and the bulk of the debts was the defecit.
The secured debtor will be getting €1900 out of a €3200 salary from a 59 year old man.
How much more do you think he could have done?
I had €7000 arrears on a house after my co-borrower died, I tried to engage with the bank and they wouldn't settle on anything after years of discussion other than taking my house rather than coming to an equitable arrangement. I was 40 when this happened, my mortgage was more than half my salary at the time. It then turned out that I am one of the tracker redress cohort. It sticks in my throat a little that getting 7million written down seems to be easier than 7000. I wasn't comment on Flynn himself, just the madness of imbalance when it comes to dealing with banks.
 
I was 40 when this happened, my mortgage was more than half my salary at the time.

Hi Nailligo

It seems from what you are saying and what you said at the time


that the bank could not offer you a sustainable solution. You were using your father's income to pay the mortgage and without that, the mortgage was just not sustainable.

You had serious negative equity, and I presume that has now been written off as part of your PIA.

You are free to make a fresh start, although I accept that it's difficult now that you are 6 years older.

But, the banks lent money freely. They only lent to you because your father contributed to the mortgage. Without his contribution, you would not have been able to buy a house.

Brendan
 
It sticks in my throat a little that getting 7million written down seems to be easier than 7000. I wasn't comment on Flynn himself, just the madness of imbalance when it comes to dealing with banks.

There are PIAs in the paper every day where ordinary people get big amounts written off. It's not limited to the people with millions.

A PIA can only be proposed when it is sustainable. Your PIP clearly thought that keeping your house was not sustainable.

As you lost the house anyway, I wonder why he did not propose bankruptcy?

Did your father's estate pay the shortfall on the mortgage?

Brendan
 
There are PIAs in the paper every day where ordinary people get big amounts written off. It's not limited to the people with millions.

A PIA can only be proposed when it is sustainable. Your PIP clearly thought that keeping your house was not sustainable.

As you lost the house anyway, I wonder why he did not propose bankruptcy?

Did your father's estate pay the shortfall on the mortgage?

Brendan
I had a PIA that was unsustainable as I was paying rent and paying back creditors. My PIA ended prematurely.
No, the estate didn't pay any shortfall, the agreement from the start of the PIA was that any shortfall was to be written off. They did try to pursue it but I had to remind them of the original agreement.

The bank ended up taking a 50k hit. Interest only would have been affordable in my case at the time. I'm just venting Brendan, I'm on the waiting list now for an FSPO reply in relation to the redress issue...most of this was avoidable.
 
So AIB had a full right of recourse to your father's estate, but did not exercise it? Was your father's estate in excess of €50k?

It seems to me that you did very well.

You got a PIA which, presumably, meant that you kept your home?

So you kept your home.
Your father's estate was released from its liability.
You got a write-off of €50k.

But for some reason, the PIA ended early. Presumably you were unable to sustain it?

Brendan
 
I am a big fan of interest-only.

But the Central Bank was not and so a mortgage which relied on interest-only, was not regarded as sustainable.

Brendan

Hi Brendan, could you elaborate on this? Seems unduly (and unnecessarily) punitive to not consider IO, even as a last resort.
 
Hi Itchy



I attach a presentation I made some years ago to the Dublin Economics Workshop
 

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So AIB had a full right of recourse to your father's estate, but did not exercise it? Was your father's estate in excess of €50k?

It seems to me that you did very well.

You got a PIA which, presumably, meant that you kept your home?

So you kept your home.
Your father's estate was released from its liability.
You got a write-off of €50k.

But for some reason, the PIA ended early. Presumably you were unable to sustain it?

Brendan
I didn't keep my house Brendan, I didn't do well at all. The PIA ended early because I couldn't afford it, I had to pay rent and pay back the PIA so something had to give.

I wouldn't say I got a write off at all, the bank had agreed that on getting the keys to the house, my mother (the estate) wouldn't be pursued for any shortfall...they got a house, they sold it at the price they did, that wasn't up to me.
 
I didn't keep my house Brendan, I didn't do well at all. The PIA ended early because I couldn't afford it, I had to pay rent and pay back the PIA so something had to give.

If surrendering the house was part of the PIA, then why did you not just go for bankruptcy?

Or was a 6 year deal, part of the conditions for letting your mother off the hook?

What happened when the PIA collapsed?

I am missing something in this story.

But either way, you or your mother got a substantial write-off on surrendering the house.

Brendan
 
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