Judge says couple are better off having home repossessed
HIGH COURT PAIR OWE MORE THAN THEY BORROWED IN FIRST PLACE
A HIGH COURT Judge has warned homeowners in negative equity that they could find themselves in an even worse off situation unless an order of possession is granted against them.
The comments from Ms Justice Elizabeth Dunne were made as she heard a home repossession hearing involv- ing a County Wicklow property
Justice Dunne spoke after granting a possession order for the property, adding that the situation was actually getting worse for the defendants as they now owe Leeds Building Society more money than the original loan they took out.
‘The amount to be realised is over the amount initially borrowed by a significant amount,’ stated Justice Dunne.
In May of 2007 a mortgage for €400,000 was withdrawn. However, mortgage arrears of €21,500 were now also owed. The court heard that five of the defendant’s cheques and 11 direct debits had bounced.
This included a cheque for €10,000 received in November of last year. As a result the defendant now has an outstanding balance of €419,387.59.
Justice Dunne noted ‘it’s of particular concern that the amounts now due are greater than the amounts originally borrowed’ as she granted the order for possession.