Anglo seeks €36.3m over unpaid property loans

Anglo seeks €36.3m over unpaid property loans - Mary Carolan → … 37334.html

IBRC entitled to demand repayment of €36m lent to businessman, Commercial Court rules - → … -1.1393307

More than 6 years on, and they are still ‘entitled’ to live on Palmerstown road:

Couple with €32m debt refused to move from ‘trophy home’ to cheaper property, court told

Nama has won the right to repayment of €32m from a property investor who refused to move from a “trophy home” to a less valuable property.

A High Court judge ruled Nama’s demand for the outstanding money, on loans for property investments, was valid and lawful.

But a finding whether Nama can enforce a further €3.5m loan secured on the family home of Carol and John Morrissey at Palmerston Road, Dublin 6, would be “pre-emptive” as Nama has not so far sought to enforce that loan, Ms Justice Una Ní Raifeartaigh held.

She adjourned the making of final orders for two weeks. Mr Morrissey said an appeal will be brought.

In dismissing the case by the couple, representing themselves, the judge noted that Nama claimed Mr Morrissey had in 2013 rejected a suggestion they relocate to a less valuable property on Lower Churchtown Road, insisting they were entitled to continue living on Palmerston Road.

A Nama agent had said he explained to Mr Morrissey Palmerstown Road would be considered to be a “trophy home” as it was valued in 2013 between €1.8m to €2m while the Churchtown property was valued at €800,000.

The agent said he questioned how “optically” it would look to the taxpayer if Nama was to allow Mr Morrissey and his family remain there whilst owing them more than €25m in residual debt - the debt remaining after the investment properties were sold - and more than €4.7m outstanding on the loan secured on their home.

The couple had claimed damages over alleged various unlawful acts by Nama, including taking enforcement action over the loans and appointing receivers over properties.

Mr Morrissey got loans of some €27m from Irish Nationwide Building Society between 2004 and 2006 in connection with acquiring seven investment properties.

The loans were secured by mortgages over the properties, there were problems with repayments as early as 2006 and the loans were in serious default when acquired in 2010 by Nama.

In 2014, Nama called in the loans by demanding the then outstanding sum of €32m. When that was not paid, it appointed receivers who sold the investment properties, reducing the debt to €25m.

A loan of €3.75m borrowed in 2005 to buy the Palmerston Road property, secured on the house, is also in default but Nama has not so far decided to enforce against that loan.

In their case against Nama, Capita Assets Services (Ireland) Ltd and various State parties, the couple argued Nama was not entitled to call in the loans and also sought a declaration Nama does not have valid security over the family home.

The defendants disputed the claims. Nama counter-claimed for final judgment.

On what basis are they entitled? I see that word again and again. I would understand a bit better if they said something like the house wasn’t named as an asset to secure any of the loans but no, we seem to simply get bald statements of ‘entitlement’

Same entitlement culture that has been in situ since the collapse. More fools us thinking that there would be timely consequences for not paying up…

By way of contrast.

A ‘celebrity’ doctor who claims to have done the right thing. Sell up, trade down and move on.

Dr Ciara Kelly reveals how mortgage arrears forced her to sell her home

Dr Ciara Kelly has revealed how falling into mortgage arrears on her home felt ‘like a noose around her neck.’

The former Operation Transformation expert also revealed that she had to sell her house at market value, much less than what she paid for it, and move to a cheaper house in order to pay off her debts.

Speaking on her Lunchtime Live show on Newstalk, Kelly said: ‘I didn’t intend to say this on air but I’m going to. I got into mortgage arrears. I warehoused my debt and I had to sell my house. I cleared it because I traded down.’
‘I didn’t want to make it about my story because it’s not as interesting as other people’s. I ended up with a mortgage that was unpayable.’

‘I used to earn more money and then I earned less money and the house was worth less than I bought it for.’

The former OT expert said that her salary fell drastically during the economic collapse and was suddenly unable to afford the mortgage payments on her home.
‘Just to be clear, I didn’t get any write-down. I paid it all off and moved to a smaller house because there was no other way for me to do it.

‘I was luckier because I was able to do that. There’s no shame, many many of us got caught with the negative equity and the unpayable debt and the horror show that goes with it.’

‘The housing market collapsed. It didn’t hit just one sphere of the population. I was a doctor and my income fell by 45pc in 18 months.’

‘I couldn’t pay my bills. I’d go to Lidl and I’d look at beans and say, ‘We’ll have beans a few nights this week’

In the end, moving homes turned out to be a blessing in disguise she says:

‘The relief of being somewhere where they’re not coming at you the whole time…being somewhere you’re not hassled or feeling that noose around your neck and lying in bed at night doing sums in your head.’