Guarantor of friend's loan loses her home

irishtimes.com/newspaper/ire … 57951.html

“The Co Mayo woman had guaranteed a business loan of €962,000 with ACC Bank for her friend in 2007.”

Is it wrong not to feel sorry but a bit:

There will be a lot more of this to come - particularly with parents. I refused a BoI mortgage and moved to Ulster as, although a professional borrowing 2x my income, they would not extend a loan without a parental guarantee.

Wat in god’s name was she thinking - this arangement was always going to end badly.

don’t feel sorry for her…how could you guarantee a loan of nearly a million for a friend…I would’nt even do it for a family member.
Also the headline says she’s having her ‘home’ repossessed but I don’t see that when reading the story. To me it reads that she’s losing a property, possibly a buy to let. Perhaps an editorial angle at play here?

And of course the disability angle to this and every other repossession story is evident…in this one it’s dyslexia.
In the story below it, it’s dementia.
Is there a single borrower who’s in trouble in this country who does’nt have a disability/ailment or someone closely tied into the property who has 1…

Doesn’t mention the friend’s business venture but since the loan was due to be repaid over 20 years, it is likely to be property related. Such a crazy thing to do.

Why does everybody who goes to court over a guaranteed loan try to pull a Mansfield Junior? Does these ever work? If I ever ended up in a situation like this, I’d like to think I could come up with a much better story, one involving strippers, cocaine, gambling and a dying little boy named Timmy whose only ever dream in life was to invest in four off-plan apartments in Cherry Orchard.

The banks can’t even enforce security on BTL mortgages. It will be a long long time before they start enforcing parental guarantees for PPRs.

She was unlucky that the judge didn’t have any borrowings with ACC.

I thought the other story in this article was interesting too…

Charleville Credit Union sought to obtain an order for sale against a home and farm in Co Cork on condition the elderly owner was allowed to stay in his home for the rest of his life. The man had guaranteed a €720,000 business loan for his son

wtf was a Credit Union doing giving a 720,000 euro loan.
Is that normal for a CU . I thought they were meant to be small-medium micro-credit facilities /

:smiley:
Or at least saving a woman from the jaws of a shark.

You’re a long way from what CUs became during the bubble.

Speculate to accumulate. And still pay no more than a couple of percent dividend to their savers. Nice offices, big salaries though…

+1 regarding the credit union

i heard this on the radio. it stated the dad had dementia. This throws up a thousand other questions here.

Lots of stories locally on the crazy lending this place was doing - Looks like this bailout will have to drawn down

Isn’t it legally an “unfair contract” to guarantee a friend’s loan for no compensation - and therefore unenforceable? Maybe all personal guarantees for zero compensation will be struck out? :open_mouth:

Apart from that Mrs. Lincoln…

It was normal when FG General election 2011 candidate Tom McHugh was chairman of the Tuam Credit Union and lending multiples of that amount to himself. Jaysus Tom could have been the first Galway based Minister of Finance if only he was elected. :smiley:

I’ll see your strippers and cocaine and raise you: “Bank lent 90 times salary to psychiatric patient to spend 1.5m on derelict cottage

askaboutmoney.com/showthread.php?t=176520

Wow, incredible story. Apart from the crazy price and the drugs that helped to facilitate that crazy price (looks like both sides of the loan arrangement might have been suitably medicated) I’m interested to know if there was any plans for the properties. If the loan was just for purchase (which looks to have been the case) how was it ever going to be repaid without redevelopment and where was the money for that going to come from?

Having perused the thread further, I agree. I think he is the protagonist and seems to have started the thread entirely to pitch this terrible business proposition. How so much money was paid for 3 dilapidated cottages we may well never know, if indeed it was.

+1, people with mental issues will do this in real life too. Especially when they know themselves they’re in the wrong but are trying to convince themselves and all around them that they’re not.

Something is very off in the story alright, either there was some business plan that went south or else the solicitor/valuer/broker were colluding to rip off a vulnerable person. I guess it could be either, Irish people aren’t well known for taking responsibility for their actions; but then again Ireland is also not well known for successful actions against professionals who have engaged in misconduct, although happily this appears to be changing.