Wednesday 21 March 2018

Couple's family home repossessed after arrears top €25,000

Patricia McDonagh

A couple saw their family home repossessed yesterday after failing to meet payments on a €240,000 loan.

Their house was taken back by Stepstone Mortgage Funding which gave the pair a loan in August 2007 at a rate of 8.15pc interest.

Just four months later they began defaulting on the loan. In October 2008 the arrears had topped €8,000. By September of the following year the couple were in arrears of €25,890 and owed a total of €265,472.

Lawyers for the couple said they would not consent to the repossession because they feared they would not get on the council housing list.

Justice Daniel O'Keeffe granted an order of repossession to the lender, but also a stay of six months to allow the family to find other accommodation.

The High Court also saw a repossession order granted to Bank of Scotland, which was owed more than €1m by a Waterford couple.

The owners of the building received a loan of €78,000 for the construction of a four-storey house in Waterford in May 2003. In March 2005, the bank lent them another €71,000 to assist with the completion and fit-out of the premises.


And in October 2005, they lent a further €1m to re-finance existing debt and again assist with the fit-out of the premises.

However, after failing to meet their repayments, the owners were in debt to the tune of €1,039,604 in October 2009.

Lawyers for the bank said there had been efforts to repay the loan but it had not been totally cleared. Mr Justice O'Keeffe granted a repossession order with a stay of three months.

Meanwhile, a Roscommon pub that owes more than €364,321 to Bank of Ireland temporarily escaped a repossession order yesterday.

Lawyers for the owners pointed out the pub had been flooded and by refurbishing it the owners hoped to bring in tenants. This rental income, together with funds flowing in from two telephone masts located at the back of the premises, would provide the owners with a monthly income of €2,533.

This would exceed the monthly loan repayments of €2,469 and a further €10,000 could be lodged straight away.

Lawyers for the bank expressed concern that this income was based on a gross figure, and did not take into account that the owners would have to pay tax. However, the judge said the situation would be reviewed on July 26 when the €10,000 was lodged and did not grant an order.

Irish Independent

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