DEFENDANTS IN repossession cases should come to court and explain their position, Ms Justice Elizabeth Dunne said yesterday.
Granting an order for a Co Limerick property on which mortgage arrears of €30,584 had accrued, the High Court judge said “when people don’t turn up and explain their situation, there’s not much else I can do, particularly when there are extreme arrears”.
The court heard how the defendants currently owed more than the original loan, as they had fallen 13 months in arrears.
The original loan was for €270,000 with in excess of €296,000 currently outstanding.
The judge’s request follows a similar one made by Mr Justice Brian McGovern in December 2008.
Referring to a case in which mortgage arrears amounted to €17,251.16, Mr Justice McGovern said: “I’m sure there is a very sad history behind it, but they have entered a binding agreement . . . if they have a particular hardship they should have come in to the court.”
In an application involving Start Mortgages, Ms Justice Dunne adjourned the case for two weeks, instructing a letter be sent to the defendants reminding them “if they don’t attend, an order for possession is likely to be made”.
In a case involving Bank of Scotland (Ireland), an order for repossession was granted after the court heard how no repayments had been made since October 2006, with just under €900,000 owed.
Counsel for the plaintiff said no attempt had been made to sell the property, which is vacant, adding “it has deteriorated to the detriment of all concerned”.
The judge granted an order for the investment property, which consists of two apartments and a studio, giving a stay of four months to the defendants. An order for repossession was also granted in a case involving arrears of €22,448.81. The case had previously been adjourned for three months to give the defendants a last chance to make mortgage repayments, but none were made.
The court heard that only payments in respect of tax relief had been made over the last year. Granting the order, Ms Justice Dunne said “the position is getting worse and worse from a financial point of view”.
An application for a repossession order by Start Mortgages was granted, after the court heard only “sporadic payments” were made.
The mortgage was drawn down in May 2006, with considerable default that year. Just two payments were made in 2007, and one in 2008. Granting the order, the judge said “the defendants never really engaged with their solicitors or instructed them”.
Orders for repossession were granted on consent of the defendant in three cases, including one involving a loan of €850,000.
In another application for an order on consent, the court was told no mortgage payments had been made for approximately 14 months, with the exception of one payment in February 2008.
Repossession orders were granted for family homes, investment properties and commercial premises in seven cases out of 46 listed in the weekly chancery summonses hearing, with five of the orders going to subprime lender Start Mortgages.
A number of cases were adjourned to give the defendants a chance to make repayments.