Banks get go-ahead to repossess nine homes

NINE repossession orders were granted at the High Court as the mounting effects of the credit crisis were starkly illustrated by the number of cases of people unable to meet their mortgage payments.

A total of 21 cases were heard yesterday out of 45 listed.

In the vast majority of these cases, the people involved were in substantial arrears on their mortgage repayments, with most having not paid anything in the past year.

The amount of money owed on the mortgages ranged from €20,000 to upwards of €360,000.

Seven of the nine repossession orders granted involved Start Mortgages Ltd.

In one case, AIB Mortgage Bank was granted a repossession order on a property in Kerry after €85,000 had built up in mortgage arrears. The owner failed to make any repayments in 2007 and only managed two in 2006.

A repossession order was also granted to GE Capital Woodchester Home Loans Ltd after €362,000 had accrued in mortgage arrears.

The owner had failed to make any payments since October 2007, and since then could only offer to pay €1,200 per month out of a payment of €2,151.

The court heard that the owner had tried to sell the home on a number of occasions but each time the sale had fallen through. This was despite lowering the asking price by more than 50%, from €1.8 million to €800,000.

The other seven repossession orders were granted in favour of Start Mortgages Ltd.

In these cases the amounts owed ranged from €11,000 to €27,000, with most of the owners unable to make any payments on their mortgage in the past year.

In two cases involving mortgages that were granted in 2006 by Start Mortgages Ltd, only five repayments had been made in the lifetime of the mortgage.

The first of these involved arrears of €22,000 on a property in Westmeath. The court heard that the last mortgage payment was made in August 2007.

In another case, the last payment on arrears of €23,000 was in July 2007, also with only five payments ever made.

None of the owners were present and the court heard many of those in substantial arrears had failed to make any contact with their lender since proceedings were issued against them.