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okaycuckoo

Mortgage Prisoner Released Into The Wild

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Not sure I believe these figures ... suggest a house in Dublin was sold for €75k:





A DUBLIN nurse has secured a [font="Arial Black"]€152,000[/font] write-down on her mortgage debt in one of the first recorded examples of debt forgiveness by a major bank, it was reported today.

Laura White (35) agreed the deal with the Bank of Ireland on Monday, settling a case over the shortfall on the sale of a house she voluntarily surrendered three years ago, according to the Irish Times.

The deal means that instead of repaying the outstanding [font="Arial Black"]€170,000[/font] owed, she will pay just [font="Arial Black"]€18,000[/font] at a rate of €250 a month for six years.

Bank of Ireland subsidiary ICS took legal action against Ms White in 2010 relating to the [font="Arial Black"]€245,000[/font] it lent her to buy the house in Coolock, Dublin.

She handed the house back to the bank as she was struggling to make the repayments and wanted to move to the west of Ireland.

The house was sold but left a shortfall of [font="Arial Black"]€170,000[/font] on the mortgage owed.

Ms While thought the sale of the property would cover the debt. Her legal team argued that the house should have been sold more quickly before the property market plunged.


There are fears among some homeowners that many people who over-extended themselves during boom with large home-loan debt would end up getting debt deals at the expense of those who were more cautious.



http://www.independent.ie/national-news/dublin-nurse-secures-152k-mortgage-debt-writedown-3093817.html

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So if it had been sold quickly at auction they would of argued they brought it to market to quickley, not allowing enough time for a buyer to pay a higher amount?

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Discussed here. http://www.thepropertypin.com/viewtopic.php?f=4&t=44348
edit
Doccy Boy just beat me to it. Edited by Freeholder

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legit - the lender as well as the borrower may be culpable for badly managed debt

what is still disgraceful is the way that lenders have been lock stock bailed by the public purse internationally and had their professional negligence forgiven and paid off

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nothing new here...IVAs and other debt settlement agreements happen all the time.

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[quote name='doccyboy' timestamp='1335547513' post='909024549']
thread on the property pin giving more details
[url="http://www.thepropertypin.com/viewtopic.php?f=4&t=44348"]http://www.theproper...php?f=4&t=44348[/url]
[/quote]
The pin has no answer to the apparent €75k sale price.

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[quote name='Bloo Loo' timestamp='1335550582' post='909024580']
nothing new here...IVAs and other debt settlement agreements happen all the time.
[/quote]
Not quite - this is debt secured by a mortgage.

Bankruptcy/IVA effectively relates to unsecured creditors - they can't force the sale of a property in negative equity. So long as the debtor can pay her secured creditors she hangs on to the property, right through bankruptcy discharge.

This woman surrendered possession. The shortfall from the sale does create an unsecured debt, but that's why the circumstances of this sale are very fishy. I'd also like to know if she does have unsecured creditors.

Insiders selling to insiders? Happens in the UK, and nobody has really plumbed the depths of corruption in Ireland. There was a tribunal report on Dublin planning a few weeks ago which was an OMFG moment, but that scandal was overtaken years ago by the banking disaster.

That may be the key to this settlement - creditor didn't want a legal inquiry into the circumstances of sale.

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Even if she surrendered the house, the monthy interest payments would have continued to add up.

Then there's 'admin charges,' and loads of other stuff as well I expect. Is it really as simple as 245k - 170k = 75k?

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[quote name='okaycuckoo' timestamp='1335561742' post='909024702']
Not quite - this is debt secured by a mortgage.

Bankruptcy/IVA effectively relates to unsecured creditors - they can't force the sale of a property in negative equity. So long as the debtor can pay her secured creditors she hangs on to the property, right through bankruptcy discharge.

This woman surrendered possession. The shortfall from the sale does create an unsecured debt, but that's why the circumstances of this sale are very fishy. I'd also like to know if she does have unsecured creditors.

Insiders selling to insiders? Happens in the UK, and nobody has really plumbed the depths of corruption in Ireland. There was a tribunal report on Dublin planning a few weeks ago which was an OMFG moment, but that scandal was overtaken years ago by the banking disaster.

That may be the key to this settlement - creditor didn't want a legal inquiry into the circumstances of sale.
[/quote]

jingle mail we used to call it. this is not a forced sale...it is a hand back and walk away.

Creditors are at liberty to write off any debt they choose...secured or otherwise....in this case that got what they could be selling the house, and now the rest is owed by the debtor.

And yes, secured debt can be adjusted under an IVA, negative equity SOLD out from under a Bankrupt where repayments cant be met. Edited by Bloo Loo

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[quote name='Bloo Loo' timestamp='1335604905' post='909024906']
And yes, secured debt can be adjusted under an IVA, negative equity SOLD out from under a Bankrupt where repayments cant be met.
[/quote]
Only with the consent of the secured creditor.

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