# Whatever happened to Indemnity Bonds



## Purple (6 Jul 2010)

I remember a friend buying a house in Lucan in the mid 90's. The bank insisted that they buy an indemnity bond to cover the risk of negative equity (i.e. the sale price being less than the value of the outstanding mortgage). I think these bonds were quite common for a while, can anyone confirm if this was the case and if so what proportion of houses were covered by them?


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## NorfBank (6 Jul 2010)

They were common, no idea what proportion was covered though.

I think IIB (KBC) were the last lender to do away with them, sure in a never ending rising market there was no need for them! 

http://www.askaboutmoney.com/showthread.php?p=1006410


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## Purple (6 Jul 2010)

Thanks NorfBank


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