Govt to force mortgage lenders to begin repossession proceedings in Circuit Court

the_syco

http://www.argus.ie/breaking-news/national-news/govt-to-force-mortgage-lenders-to-begin-repossession-proceedings-in-circuit-court-1801616.html

http://news.eircom.net/breakingnews/15978991/

The Government are going to make it mandatory for financial institutions to commence repossession proceedings in the Circuit Court.

An amendment to the legislation is due to be signed into law within weeks.

The Minister for Justice Dermot Ahern has tonight expressed his concern that repossession proceedings in the case of home loan mortgages are being routinely pursued in the High Court by certain institutions.

Minister Ahern says that practice seems to be deterring some borrowers from making an appearance in court to enter a defence.

He says the obligatory change will encourage those with repayment difficulties to enter a defence and benefit from the margin of discretion the court can exercise.

Sounds like a good idea. Wonder what it will be like in practice, though?

Agent J

I thought it had to go to the high court once it was over XXX amount in the 1st place?

I might mistaken.

Jo King

Agent J wrote: »

I thought it had to go to the high court once it was over XXX amount in the 1st place?

I might mistaken.

If the rateable valuation of the house is less than €254 then it can go in the Circuit Court. Most domestic property is far below this with Rvs typically in the range of €20-€40

Agent J

Jo King wrote: »

If the rateable valuation of the house is less than €254 then it can go in the Circuit Court. Most domestic property is far below this with Rvs typically in the range of €20-€40

I dont quite follow?

House value, repayments or amount of debt?

Jo King

Agent J wrote: »

I dont quite follow?

House value, repayments or amount of debt?

The rateable valuation. It has nothing to do with the house value, the repayments or the amount of debt.

fella1977

Can you explain 'rateable valuation of the house is less than €254'?

i am in a position where I am being threatened with legal action if I dot close the sale of an apartment. The apartment purchase price was 500k but valuation is 300k. If the developer resells the apartment, he says he will sue for the difference but if he doesnt sell, he will sue for 500k.

What are the rough costs if a case went to the circuit or high court?

shoegirl

Makes sense, really. Would slow other circuit court cases up though surely? Shouldn't be going to court at all, some kind of mediation body should be put in place if cases hit a certain level. Its not difficult to distinguish the "reckless lending" from the "no intention of paying" so why not move it on more quickly?

Friend of mine who often struggles to meet her mortgage payments in Australia says over there they can start proceedings pretty much as soon as you start missing payments. Seems harsh but dragging things out is adding huge levels of interest which is not in the best interests of those already struggling.

Jo King

fella1977 wrote: »

Can you explain 'rateable valuation of the house is less than €254'?

i am in a position where I am being threatened with legal action if I dot close the sale of an apartment. The apartment purchase price was 500k but valuation is 300k. If the developer resells the apartment, he says he will sue for the difference but if he doesnt sell, he will sue for 500k.

What are the rough costs if a case went to the circuit or high court?

Every property has a rateable valuation. The has nothing to do with market value. It is used for the calculation of the rates payable to the local authority.
Typically dwellings would be in the €20 -€40 range.

A circuit court case will cost a minimum of €6K for each side (the loser will have to pay both) and could well be a lot more.
Multiply that by 3 for the High Court.