# Oliver Flynn write down of €7 million



## Nailligo (13 Jul 2022)

https://www.irishexaminer.com/news/courtandcrime/arid-40916174.html this sort of stuff will never cease to amaze me!


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## vandriver (13 Jul 2022)

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?


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## Nailligo (19 Jul 2022)

vandriver said:


> 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.


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## Brendan Burgess (19 Jul 2022)

Nailligo said:


> 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 






						Death of a co-borrower and enforced Insolvency, engaging doesn't work
					

I hope this doesn't become a rambling tome but I'll try to make this as short as possible. My father was co-borrower on my mortgage and died in 2011, I started talking to the bank in May 2013 about the potential for difficulty with making repayments and how I'd like to try to come to some...



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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


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## Brendan Burgess (19 Jul 2022)

Nailligo said:


> 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


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## Nailligo (19 Jul 2022)

Brendan Burgess said:


> 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.
> 
> ...


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.


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## Brendan Burgess (19 Jul 2022)

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


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## Brendan Burgess (19 Jul 2022)

Nailligo said:


> Interest only would have been affordable in my case at the time.



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


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## Itchy (20 Jul 2022)

Brendan Burgess said:


> 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.


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## Brendan Burgess (20 Jul 2022)

Hi Itchy






						Key Post - Central Bank no longer insists that mortgages in distress must be repaid by age 70
					

The Central Bank has updated its   Internal Guideline - Sustainable Mortgage Arrears Solutions  This arose in response to a request from Ciarán Lynch T.D.  to the Central Bank Governor  that they revise their guidelines in accordance with his comments to the Oireachtas Finance Committee...



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						Swedish banks allow 70% LTV , interest only indefinitely!
					

I have often argued that a mortgage is sustainable for the bank and for the borrower while the borrower can pay the SVR interest on the mortgage.  I have often quoted the fact that the Swiss banks will lend 67% of the value of the home, interest only , indefinitely.   I wasn't aware that the...



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


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## Itchy (20 Jul 2022)

Interesting thanks.


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## Nailligo (20 Jul 2022)

Brendan Burgess said:


> 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.
> 
> ...


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.


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## Brendan Burgess (20 Jul 2022)

Nailligo said:


> 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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## Brendan Burgess (20 Jul 2022)

Nailligo said:


> I wouldn't say I got a write off at all,





Nailligo said:


> The bank ended up taking a 50k hit.



?


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