Why do the lenders pursue borrowers who are paying?

Discussion in 'Housing and mortgage arrears - policy issues' started by Brendan Burgess, Apr 16, 2018.

  1. Brendan Burgess

    Brendan Burgess Founder

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    Here are a few cases from the Dublin Registrar's Court on 13th April.

    Case 4 Ulster Bank v. C & H
    C attended court and spoke very well
    €22k arrears on a mortgage of €117k
    Paying full mortgage of €400 per month
    Registrar to bank: "€22k is not large scale arrears"
    (I agree but it's over 4 years at €400 per month.)
    Registrar: The last time I told you to send copies of letters to the borrowers, but you did not do that. Why?
    Barrister for the bank: I can only apologise.
    Registrar: These borrowers are unique:
    • These are two young people who are doing their best
    • They have low arrears
    • They have a low mortgage
    • They are paying
    I am striking this out for want of prosecution and I don't want to hear that you have appealed this to the Judge.

    Case 5 BoI vs W
    W attended court
    Arrears of €3,890 . €736 per month being paid. Registrar ordered a meeting with BoI before 27th April. Adjourned to 29th June. "I expect that BoI will have dealt with this by then." She told the borrower to check her bank statements to make sure that BoI were not charging her legal fees.
     
  2. Brendan Burgess

    Brendan Burgess Founder

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  3. Delboy

    Delboy Frequent Poster

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    Brendan, in Case 4, is the €400 per month repayments they are making including the arrears? i.e. were the arrears written off in this case or are they being paid?
     
  4. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    35,478
    Hi Delboy

    The various legal people involved in this have really no idea about mortgages and numbers. There is rarely a meaningful discussion such as "Does that include a contribution towards arrears?".

    As the arrears have not been capitalised, I assume that the repayment is the ordinary repayment.

    Brendan
     
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