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Tuesday 6 December 2016

Drumms' US house falls into mortgage arrears

property

Emmet Oliver

Published 21/12/2011 | 05:00

Anglo Irish Bank's former chief executive David Drumm has filed for voluntary bankruptcy in the United States where the bankruptcy laws are much more lenient compared to Ireland
Anglo Irish Bank's former chief executive David Drumm has filed for voluntary bankruptcy in the United States where the bankruptcy laws are much more lenient compared to Ireland

One of the two houses in the US, owned by David Drumm and his wife Lorraine, has fallen into mortgage arrears and its home insurance policy will lapse shortly, US court documents state.

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The US trustee of David Drumm's bankruptcy, Kathleen Dwyer, is seeking the immediate sale of the house in order to repay Mr Drumm's creditors, among them Anglo Irish Bank (now known as IBRC). The property is located in Wellesley, Massachusetts.

According to filings in the US made by Ms Dwyer, the Drumms used to live at the house, but neither resides there now. However, she claims a mortgage given by Boston Private Bank and Trust to a trust controlled by the Drumms is no longer up to date.

"The November 2011 and December 2011 mortgage payments due to Boston Private Bank and Trust on the Wellesley mortgage loan were not made," states a document filed by Ms Dwyer.

Lapse

"Accordingly, interest and costs continue to accrue which will impair the equity in the Wellesley property," she added.

"The home insurance for the Wellesley property will lapse in January 2012."

Ms Dwyer is seeking to sell the entire property, without being blocked by Mrs Drumm. Ms Dwyer claims this would be the best way to maximise the amount of money which could flow from any sale.

The Drumms bought the house in 2010 for $2m in the name of the Epiphany Nominee Trust and they are both 50pc beneficiaries of this trust. Ms Dwyer insists that she is now "standing" in the shoes of Mr Drumm -- as the bankruptcy official -- and as a result can terminate this trust.

The proceeds of any sale could still be shared between Ms Dwyer (acting for Mr Drumm's creditors) and Mrs Drumm, but Ms Dwyer claims it is vital that a sale be undertaken as soon as possible.

"A sale of the Wellesley property would have little, if any, impact on Mrs Drumm and her family. Mrs Drumm no longer resides at the Wellesley property," she explained.

"The property will shortly be uninsured and unpaid interest and late fees on the mortgage indebtness continue to accrue."

Irish Independent

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