Lender repossesses Waterford Crystal couple's house

AN ORDER for possession was granted yesterday at the High Court against a couple who lost their jobs when Waterford Crystal closed down.

The court heard the couple, who have a special needs son, had written to the lender, Stepstone Mortgage Funding Ltd, to renegotiate their terms when they were laid off, but the company did not respond.

Justice Brian McGovern granted eight orders for possession from 63 cases before him. Three orders were granted to Start Mortgages Ltd; Stepstone was granted two and the Educational Building Society, Bank of Scotland (Ireland) Ltd and Danske Bank were granted one each.

The court was told a Waterford couple had taken out a mortgage of €277,000 in April 2008 with Stepstone Mortgages with monthly repayments of €2,422 at an annual rate of 10.76 per cent.

The house cost €340,000. While they were both working for Waterford Crystal they could meet the repayments, but they were laid off. Neither were with the company long enough to be given redundancy payments. The court heard the family wrote to the lender in July 2008 explaining they were unemployed and seeking to renegotiate their terms, but the company never responded.

Counsel for Stepstone acknowledged a letter had been received by the company’s customer service department and was not passed on to the relevant section or replied to. She described the matter as an administrative oversight that was “regrettable”.

Four months later, the couple, who had no legal advice, received a letter from Stepstone telling them to leave the premises within 10 days. The arrears were at €7,666 at that stage.

The woman, who was in court yesterday with her daughter, said they left their home because they thought the company would take it. They began renting another property and did not contribute toward the mortgage, but having spoken to the judge at an earlier hearing in July, they moved back into their family home.

They offered to repay the company €800 a month, but the company refused the offer. The woman said she went to the HSE to look for mortgage interest relief, but was told they could not grant relief while the family was in arrears. They advised her to ask the lender to consolidate the arrears into her mortgage and then she could qualify for relief.

However, the lender refused. During a phone call, Stepstone assessed the family’s income and expenditure, the court heard, and said they could stay in their home if they paid €1,000 a month. But, the woman told the court, they could not raise that much.

“I offered all my carer’s allowance [€220 a month], they said no,” the woman tearfully explained. “I’m sorry I ever went to them, they brought me to hell and back and they can have the house.”

Mr Justice McGovern asked counsel for the lender whether they might consider accepting €800 a month. But counsel for Stepstone said the sum would not be acceptable given the arrears involved.

The judge said it was unfortunate, but people who entered into agreements had to repay the money. He adjourned the case to give the woman time to consider her position. When she returned, the woman said she would agree to the order for possession. “I think I’m only putting off the inevitable, I have to think of my child,” she said.

“I think you’re doing the right thing, the figures don’t stack up,” Mr Justice McGovern said.

Counsel for the lender then asked for her costs. The judge said he had hoped they would not be sought, but he had no option but to grant them.

“I would like to do something else, but I can’t,” he said.