# Warning: you risk losing your home if you don't pay your mortgage



## Brendan Burgess (17 Mar 2018)

A few people felt that I had understated the risks of not paying your mortgage in this thread:
*What happens if I stop paying my mortgage?* I subsequently edited the post to make it clear that I was not advocating a policy of not paying your mortgage and indeed, you do risk losing your home.

To emphasise this further, I want to report on a case in the Dublin Registrar's Court yesterday. The Tipperary Registrar, James Seymour, was presiding instead of the usual Registrar, Rita Considine.

KBC vs. Mark and Mary
Mary was in court and was represented by MABS and the Abhaile Duty Solicitor.


*Payment history*
They first missed payments in 2009
In 2012, they paid €1,500
In 2013, they paid nothing.
In March 2014, Mary paid €300
In February 2018, she paid €35.
In March 2018, she paid €35.

The arrears are €92k which equals 7 1/2 years of repayments. KBC's counsel pointed out that at this level of payment, it would take two centuries to clear the arrears. 
The mortgage is €289k. ( Similar houses are selling for about €160k on this road.)

*Court hearings history *
KBC began proceedings in 2014.  These proceedings were struck out due to the Rateable Valuation issue.

KBC reissued proceedings in 2016.

At the last hearing which was in December 2017 or January 2018, she was directed by the Registrar to submit an SFS within 7 days.  She submitted the SFS on 8th March.

At the last hearing, she undertook to resume payments, but did not do so until the €35 was paid in February.

The Abhaile solicitor argued her case for her:
She has in fact been paying €35 per week since February. ( This might be the same as €35 per month, if she had paid €35 in the last week of February and €35 again in the first week of March.)
She did submit an SFS.
She did engage with the lender.
She got a letter from KBC in the past week suggesting that she should apply for Mortgage to Rent.
She had difficulty applying for MTR up to now, as Mark, presumably her ex, had refused to sign the application form. He has now agreed to do so.
She wants social housing.

Counsel for KBC pointed out that MTR does have a requirement that people have payment capacity and her payment record might make it difficult for her to qualify for MTR.
Although MABS were present with Mary in court,  they had written to KBC saying that they were no longer representing her as she had not turned up at a meeting.

The Registrar said that he understood her position and that she had done nothing wrong. His exact words "Granting an order will help you get social housing.  Mark has let you down. He needs to be here. To be a man. An adjournment would not help you."

So he granted an order for possession and put a 12 month stay on it.

KBC applied for their costs but the Registrar refused them.

Brendan


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## Brendan Burgess (17 Mar 2018)

Mary seemed surprised and disappointed that the bank successfully got an order against her.

So it's very important to understand that if you don't pay your mortgage, you do face a serious risk of losing your home.

Having said that, Mary was a bit unlucky in this case.

Normally submitting an SFS the week before a court date results in the lender requesting an adjournment to assess it. But KBC turned this around quickly and concluded that it showed no evidence of affordability. 

The KBC barrister was excellent and had his paperwork in order. In many cases, the legal teams fall down due to some fault in the documentation. But a borrower should not rely on this. 

A different Registrar heard the case - though to be fair to the Dublin Registrar, she may have also granted an order in this case as Mary did not adhere to the commitments given at the last adjournment.
Mention of the Mortgage to Rent usually merits another adjournment but counsel argued well against this and MTR doesn't seem to have as much an impact on this Registrar as on others. 

I think she made a strategic mistake in letting the solicitor speak for her. There was no legal issue in dispute. It is much harder for the Registrar to look a borrower in the eye and say "I am granting an order against you". It's much easier to tell a solicitor that with the borrower one step removed.


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## Brendan Burgess (17 Mar 2018)

*Other orders granted yesterday - none of the borrowers present *

Order 1 An order was granted by consent of the borrower. No details given. 

Order 2 Arrears of €93k on a mortgage of €177k. Last payment January 2015.  3 payments made in the last 7 years. "not a family home and no tenant" Proceedings began in 2016. 

Order 3 Arrears of €51k on a mortgage of €202k Last payment €244 in October 2013.   Proceedings began in 2014.  Borrower now living overseas. 


*Adjournments given 
*
Adjournment 1 Single female borrower in court. 
Last payment April 2013. 
Mortgage of €173k arrears of €60k 
Applying for MTR. 
Adjourned to June but Registrar said he would "hear the bank's application on that date and grant an order with an appropriate stay." 

Adjournment 2 Single male borrower in court but represented by counsel 
Arrears of €500k on a mortgage of €1.3m
Last payment €1,500 in 2013 
Nothing paid in 2012. 
A complicated case where the borrower got an IVA in January 2015. 
Adjourned for mention to the 29/6 and will then probably go to the Judge's List. 

Adjournment 3 Couple in court - sub-prime lender initially 
Have been paying €2,000 a month when the repayment should be €2,600 
€75k arrears 
Registrar "one last adjournment - my hands are tied. I will grant an order the next time."


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## Andy836 (17 Mar 2018)

Mary, unlucky? 
With a stay of 12 months she will have paid €70 in rent over 5 years.


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## demoivre (18 Mar 2018)

Andy836 said:


> Mary, unlucky?
> With a stay of 12 months she will have paid €70 in rent over 5 years.



She can buy even more time by appealing!


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## IdesofMarch (19 Mar 2018)

demoivre said:


> She can buy even more time by appealing!



Excuse me; Judicial review first!


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