Banks will have to talk, warns developer
A PROPERTY developer is fighting the repossession of a penthouse he bought for €1.1m four years ago, after it halved in value.
Separated dad-of-two Dean McEvoy (39) yesterday warned that Ireland is facing a 15-year "nightmare". He said that the banks should negotiate with borrowers in negative equity and at risk of losing their homes and investment properties.
"This (mortgage overhang) is Hollywood material," said Mr Dean yesterday after the High Court adjourned proceedings in which lender Permanent TSB sought to repossess a three-bedroom penthouse overlooking Citywest golf course.
Mr Dean, who lives in Castleknock, Dublin, and has property interests in Ireland, as well as Poland and Spain, borrowed €850,000 from the lender in January 2007 on an interest-only basis for the first three years of the 25-year mortgage.
But he began to default a year later and made only two of his monthly payments last year.
Although the Citywest apartment was originally intended to be an investment property, the court heard Mr McEvoy had been using it as his home after separating from his wife.
Several homes in Co Tipperary were repossessed yesterday, including that of an auctioneer who mismanaged his finances and defaulted on a €140,000 loan.
He now owes GE Capital Woodchester Loans Limited €159,332 and did not contest yesterday's application.
The plight of hard-pressed borrowers was highlighted again yesterday when a woman who had abandoned her home revealed she and her husband were "struggling to survive".
High Court Ms Justice Elizabeth Dunne granted a possession order to Stepstone Mortgage Funding Limited after she heard that the woman, who drew down a €285,750 mortgage loan in the summer of 2007 was unemployed and suffering from depression.
A four-month postponement was placed on the order to facilitate the potential sale of the property in Athboy, Co Meath, by the woman and her husband, who are both unemployed.