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Mortgage Prisoner Released Into The Wild


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#1 okaycuckoo

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Posted 27 April 2012 - 04:35 PM

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





A DUBLIN nurse has secured a 152,000 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 170,000 owed, she will pay just 18,000 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 245,000 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 170,000 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.independe...wn-3093817.html

#2 Russe11

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Posted 27 April 2012 - 05:24 PM

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?

#3 Freeholder

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Posted 27 April 2012 - 05:40 PM

Discussed here. http://www.theproper...php?f=4&t=44348
edit
Doccy Boy just beat me to it.

Edited by Freeholder, 27 April 2012 - 05:41 PM.


#4 interestrateripoff

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Posted 27 April 2012 - 06:12 PM

I can see this having to become a more widespread phenomena.

Proof that Brown had repeated IMF / OECD / BIS warnings over house prices and did nothing!!!
Looting: The Economic Underworld Of Bankruptcy For Profit
The exponential growth of debt and the unsustainability of debt
The logic of HPI @ 10% YoY means your £100k house would be worth £1.38bn in 100 years
Paying down my mortgage with money found on the street

It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCE
If DEBT is the problem REPAYMENT is the solution or you default

 

"The trouble with the world was that prices were so low that only the rich people could buy and the aim of the Conference was to raise them to a point where it would again be possible for poor people to buy something."

"Northern unemployment is an acceptable price to pay for curbing southern inflation" Eddie George former Governor of the Bank of England

New digest on the credit crisis and economy Part2 Part 3

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#5 Si1

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Posted 27 April 2012 - 06:13 PM

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

#6 Bloo Loo

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Posted 27 April 2012 - 06:16 PM

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

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#7 okaycuckoo

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Posted 27 April 2012 - 09:08 PM

thread on the property pin giving more details
http://www.theproper...php?f=4&t=44348

The pin has no answer to the apparent 75k sale price.

#8 okaycuckoo

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Posted 27 April 2012 - 09:22 PM

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

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.

#9 deflation

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Posted 28 April 2012 - 08:38 AM

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?

#10 Bloo Loo

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Posted 28 April 2012 - 09:21 AM

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.


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, 28 April 2012 - 09:22 AM.

WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#11 okaycuckoo

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Posted 28 April 2012 - 11:07 AM

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

Only with the consent of the secured creditor.




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