Borrowers ‘not co-operating’ with banks in default cases

Mortgage holders ‘deliberately evading’ financial institutions, Tralee court hears

The County Registrar’s court in Tralee has heard how  some people were deliberately ‘evading’ the bank’s legal agents. Photograph: Michaela Rehle/Reuters

The County Registrar’s court in Tralee has heard how some people were deliberately ‘evading’ the bank’s legal agents. Photograph: Michaela Rehle/Reuters

Thu, Apr 10, 2014, 17:16

A court in Tralee has heard how in several cases where financial institutions were applying for possession of property, there had been little or no co-operation from mortgage holders - even on relatively small mortgage repayments.

The County Registrar’s court also heard how financial institutions were finding it difficult to serve legal papers on mortgagees, and some people were deliberately “evading” the bank’s legal agents.

A significant number of defendants made no appearance and were not legally represented.

The court also heard how one family were being asked to pay €1.1 million on a loan of €143,000 on a mortgage on the family home taken out ten years ago by the husband. The lending institution was based in the UK, and was “sub prime”, the court was told.

In the case of a family home in a north Kerry village on the Shannon estuary, nothing was now being paid off a €32,554 debt. The the last payment, for €25, had been made in April 2009.

The original loan was for €28,000 and repayments were set at just over €126 per month over 330 months.

County Registrar Padraig Burke said “no effort” was being made on what was not a big mortgage and he would have granted the possession application today if Ulster Bank, the applicants, had their proofs “in order”. However there was no proof of the serving of the papers.

EBS Ltd were granted possession of a house sold in 2006 to a single lady, again in a north Kerry village. The arrears went back to 2009 and amounted to €39,156. Repayments were €767 per month on the €150,000 loan, and the house had been valued at €205,000 originally.

The woman was now unemployed and was “not co-operating at all”, the court was told. There were no personal details available and she was not in court. Mr Burke granted the order with a stay of two months on it, and ordered the council be informed.

The court also granted an order for possession to EBS Ltd in the case of an estranged couple with one child, neither of whom were working. The five-bedroom house which was only partially finished but “watertight” had never been lived in and did not have full planning permission.

The mortgage was €350,000 originally. Costs were awarded against the man after the court was told the financial institution had agreed a year ago to an assisted sale but could not get his consent.