Investor is hit by seven property seizures
Published 19/01/2010 | 05:00
THE High Court granted 12 possession orders against property owners yesterday, including one investor who lost seven properties due to outstanding debts of €2.3m.
Ireland's largest banks, including Bank of Ireland, AIB and Ulster Bank Ireland, were among the lenders seeking possession orders from the court against owners who have fallen into arrears.
Possession orders were granted against a single investor who owes the Bank of Ireland €2.3m in outstanding mortgage payments on seven investment properties in Co Cork.
The court heard that the investor received a loan from the bank for €2,250,000 and had a monthly mortgage of €8,325 on all seven properties.
However, the investor has not made any payments since March 2008.
In another case heard yesterday, a Co Waterford farmer had his case adjourned until next week when he was ordered to make a minimum payment of €50,000.
The court heard the farmer secured a loan of €1.48m to purchase a commercial farm through a bank overdraft of €1.25m and a loan of €250,000 on which he agreed to pay a fixed interest rate of 7.1pc.
A taxi driver also faced repossession of his family home after falling into arrears of more than €66,000 on a loan of €235,000 from subprime lender Start Mortgages taken out in March, 2007.
Judge Brian McGovern told the taxi driver that while he had "every sympathy" for him and anyone else appearing on the repossessions list, "the courts can't stand over a situation where people enter into contracts" which they can no longer honour.
However, he adjourned the case until March 8 provided the taxi driver comes up with an interim payment of €3,400.
He also agreed to an application for repossession by AIB bank against an investor who took out a mortgage of €210,000 to buy an apartment as an investment. The apartment remains unoccupied.
Draft figures obtained from the High Court reveal a record number of repossession cases are expected to go before the High Court this year.
More than 970 new applications for possession orders were made last year compared to 758 in 2008 and 374 in 2007.