Residential Mortgage Arrears, Restructures and Repossessions


#3964

Here is a right Canny McSavvy down in D4. He borrowed €25m and is somehow ‘surprised’ that his house (worth maybe €2m) is on the line for that. :slight_smile: He even held off the receivers for 5 years already.

They have argued that Aberdeen Lodge on Park Avenue, Dublin 4 cannot be seized over a €20m debt from a loan during the boom for a failed hotel project. The family have offered to pay €1.25m in debt secured on the property but they said that Goldman Sachs have refused to deal with them to remedy the situation.

This morning a man and woman arrived at the property to carry out a repossession order on behalf of receiver Paul McCann, of Grant Thornton.

Mr McCann was appointed as a receiver by Kenmare Property Finance, an Irish-based subsidiary of Goldman Sachs.

However, the family this morning refused to leave their home, with Mr Halpin saying the ongoing fight for their home and business as nearly put him in the grave.

What bit of ‘guarantee’ or ‘undertaking’ does this idiot not understand???


#3965

They lost in the High Court on legal grounds - the B&B is not protected as a principal private residence but it requires a close reading of the Act.
https://www.irishlegal.com/article/high-court-personal-insolvency-practitioners-not-required-to-work-miracles-to-protect-principal-residences

Now they are “appealing to the Irish public” i.e. contradicting Mr. Justice Denis McDonald regarding his interpretation of the law.

https://www.independent.ie/irish-news/we-need-the-public-to-support-us-family-in-home-battle-over-25m-debt-37965878.html
The 25 Million went on a “boutique hotel” which just vanished off the face of the earth :upside_down_face:


#3966

Not read links yet, but on this point alone as it’s interesting, it is not unusual for a B&B to be operated out of a PPR.


#3967

Reading the article in the Independent above the couple say they have offered to pay €1.25 million against the debt. From what? The proceeds of the property if they sell it?

They’ve already managed to squander €25 million.

These people appear to be deluded beyond belief - have they been on Marian Finucane yet? Would love to hear the texts that will inevitably come pouring in.

When asked why the public should have sympathy for them with the huge figures involved, Mr Halpin (68) stated the €25m borrowed to finance a failed “boutique” hotel was an “unsecured” company loan and should not have been held against their home.

Plenty of history online about Halpin’s various dealings over the years: He was not beyond going after individuals privately - perhaps even in their own homes.


Dublin hotelier Patrick Halpin’s bid to privately prosecute two employees of the Irish Bank Resolution Corporation for alleged deception was motivated by a desire to put them in the dock of a criminal court, the Supreme Court has decided.

“Mr Halpin was not motivated by a genuine desire to invoke the now very limited role of a private individual in the prosecution of criminal offences,” Mr Justice Frank Clarke stated in a reserved judgment.

He was motivated by a desire to secure, by whatever means possible, the attendance of Ms (Mary) Kelly and Mr (Declan) Buckley as accused persons before a criminal court.”


#3968

Links working fine for me. Ultimately, the Judge did not rely on the PPR issue - he concluded that:

even on the assumption that Aberdeen Lodge is the principal private residence of Mr Halpin, there is no debt of Mr Halpin secured over that property and it would appear to follow that s. 115A cannot be availed of” i.e. he couldn’t seek court approval of the Personal Insolvency Arrangement (PIA) if it is rejected by his creditors.

Halpin’s problem is that a company called Elektron Holdings which owes debt to the IBRC gave security over Aberdeen Lodge to IBRC. The IBRC sold the loan on to Kenmare (Goldman) which is opposing the Personal Insolvency Arrangement. Halpin’s partner (wife?) is a director of Elektron.

They had four hotels during the boom:
http://halpinsprivatehotels.blogspot.com/2009/07/welcome-to-halpins-private-hotels.html

Private hotels, public debts :stuck_out_tongue_winking_eye:

People power worked against Halpin in the past when he tried to extend one hotel. In 1999, the IT could get excited when a property appreciated from 1.2 to 1.5 Million - how quaint, and a long way from 25 Million :nauseated_face:.

https://www.irishtimes.com/life-and-style/homes-and-property/people-power-defeats-plans-for-merrion-road-guesthouse-1.181733


#3969

Residential Mortgage Arrears, Restructures and Repossessions Q4 2018 figures

(Note 1: BTL figures are discussed separately here http://www.thepropertypin.com/viewtopic.php?f=10&t=50546)
(Note 2: Analysis of Restructured Mortgages can be found here http://www.thepropertypin.com/viewtopic.php?f=19&t=63422)

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Arrears

Repossessions

Court Proceedings

Restructures

Where Green = highest since records began and Blue = Lowest since records began


#3970

Some thoughts on the Q4 2018 and overall 2018 data:

  • total mortgage outstanding figure is going up for the first time in a few years
  • arrears over 2 years is still dominating in 2018: 27,551 of 63,246
  • lowest annual figure of repossessed properties since 2013 - whatever happened to that tsunami David Hall promised us?
  • lowest court proceedings begun since 2012
  • restructured mortgages not in arrears is at a new high in Q4 2018 at 80.0%

#3971

Just looking at Credit advanced to Private households here:

https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/private-household-credit-and-deposits

Lending to households grew by just 2% between Dec 2017 and Dec 2018. Lending for house purchase grew by 1.7%

In contrast deposits from households grew by 4.4% and Income taxes were up about 6/7% in 2018.

Yep, the rationing of lending in real terms continues, based on these stats from the banks themselves.


#3972

They’re back and faced with the lies they told Miriam but they’re well ahead of the game:

the couple were ordered by the Supreme Court in March 2016 to leave the property. Their overall debt then stood at nearly €24 million.

Three years later and they’re pissing from a great height on the highest court in the land. Flung in the 'Joy for such contempt?
Obviously not, they’re given four more weeks because…well, Easter, m’lud!

https://www.irishtimes.com/business/commercial-property/aberdeen-lodge-couple-seriously-distorted-legal-battle-result-1.3875196


#3973

One for everyone in the audience…….up ya boy ya!

Of course Frank used to run for the PDs. Which supposedly stood on a platform of fiscal conservatism, and anti graft as a panacea to the Haughey era.

Frank McNamara and Theresa Lowe seeking High Court approval for €3m debt write down

Tim Healy

May 20 2019 5:12 PM

Musician Frank McNamara and his wife, barrister Theresa Lowe, are seeking High Court approval for a personal insolvency arrangement to assist them in dealing with debts of €3.7m.

They are looking to get a debt write down of nearly €3m but a fund, Tanager DAC, which acquired the debt, is opposing the application.

https://www.independent.ie/irish-news/courts/frank-mcnamara-and-theresa-lowe-seeking-high-court-approval-for-3m-debt-write-down-38129801.html


#3974

Where in the world could you get a debt write down of €3m? :thinking:


#3975

Not a bob paid for 4 years, this is not in the Pamela Flood league, yet anyway. It concerns a quantity surveyor whose name is Pat O’Kane.

Judge Linnane said the couple had the benefit of legal advice from their solicitor when they signed for a business residential loan in 2002 and again in intervening years when they increased their indebtedness.

The court, which had been told that in December 2017 the couple owed €778,522, directed that within the next month Mr O’Kane, a quantity surveyor, swear an affidavit outlining their financial position.

Judge Linnane said that in other cases where possession was being sought by banks, she inevitably learned that there were other outstanding debts.

Mr O’Kane had sought the advice of a financial adviser under the personal insolvency process but had failed to inform the bank when his relationship with that adviser ended.

What is it about these people and the leafier parts of Dublin, if this lad were a Cavan farmer he’d be out long ago. :frowning:

Blockquote They could sell the property and afford to trade down mortgage free to a smaller property.

Yeah, albeit in Ongar. :smiley:


#3976

I don’t think Cavan farmers leave either.

This couple’s problem is that they didn’t borrow enough !
‘Go big or go home’…or rather like Theresa ‘Go big, get a writedown, keep your home’


#3977

Who gave those 2 D Listers that kind of money? Fingers???


#3978

Tanager took it over from BOSI


#3979

Ah, BOSI. :slight_smile:


#3980

2019 Q1 arrears figures are out.

https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears

Pretty Charts here.

Loans in arrears of more than 720 days have actually increased for both PDH and BTL mortgages, and represent 88% of all arrears by value. Value of all loans in arrears is still €15 bn. Much of that might be ultimately recoverable, but the lack of repossessions must be costing the banks!


#3981

I think its costing the man on the street rather than the banks.

We are charged the highest mortgage rates in Europe, bar Greece, and receive little or nothing on deposit.

Banks in Ireland must see the business model as accept arrears so competition doesn’t move in. And the government allows it.


#3982

Residential Mortgage Arrears, Restructures and Repossessions Q1 2019 figures

(Note 1: BTL figures are discussed separately here http://www.thepropertypin.com/viewtopic.php?f=10&t=50546)
(Note 2: Analysis of Restructured Mortgages can be found here http://www.thepropertypin.com/viewtopic.php?f=19&t=63422)

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Arrears

Repossessions

Restructures

Where Green = highest since records began and Blue = Lowest since records began


#3983

They haven’t left as agreed and are trying to pull a fast one on the Courts to buy a few more months!