Case study First arrears 11 years ago, 13 adjournments before order for possession granted...

Brendan Burgess

Brendan Burgess

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An interesting report in the Indo which illustrates how difficult it is for a lender to get an order for possession.

Businessman who got €317k mortgage in 2005 owes €352k now, as judge orders repossession
  • Took out loan in 2005
  • First arrears 2006
  • Arrears now €79,000
  • Hasn't even managed to pay the interest
  • Kept promising to clear the arrears with a tax refund which never came
  • 13 adjournments
  • House now let out
  • 6 months stay on execution or order
However, he does appear to be paying €1,200 per month now.

With a mortgage of €352k , the interest would be around €12,000 a year, and he seems to be paying this.

The house is probably worth €200k, so if he could be tied to paying €12,000 a year, the bank would be better off taking that rather than selling the house. But I suppose they just need to close their file.

Brendan
 
I have just discovered that I was in court for an earlier hearing of this case back in April 2016. It was adjourned at that time to July as he was due a tax refund of €70k which would substantially clear the arrears. Bank of Ireland had wanted to proceed at that stage.

He was also talking about a Section 22 adjournment to appoint a PIP. It seemed like a delaying tactic to me at the time. He could have appointed a PIP and got a Protection Order before the court hearing. He had recently appointed Anthony Joyce solicitors to represent him.
He appeared from my notes to have 10 employees.

He was paying €1,200 a month, but the scheduled payment was €1,500 a month.

He had 5 children, the youngest having been born just before Xmas.

According to the most recent report, he is now living with his mother.

Brendan
 
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