Rental income- no mortgage payments being made

alex03

Ok, this is a long story and I don't know what help people could give, but just looking to see if anyone has had a similar experience or could help with offering a different perspective as I am at a loss. Mods, if it is in wrong thread, please move.

5 years ago I split with husband, I had just given up work as we had a new baby. We had two rental properties on great tracker interest only rates with good rental income. When we split up, ex wouldn't pay maintenance, for first time in my life, I had to get social welfare. They wouldn't help at first as on paper I owned two properties and was getting good rental income. The rent went in to ex's bank account though and he paid mortgages. I was desperate for money so needed to prove I wasn't benefitting from property.

I wrote to bank, my ex and his solicitor stating that as I had no access to rent or properties, that I wanted to surrender the properties. This basically put bank on notice that we were split up and only one party had control of the properties. A month later (May 2009) ex stopped paying mortgages and basically squandering the rental income, meanwhile we were in and out of court about maintenance and arrears as he was only paying intermittently.

I phoned bank every month begging them to take back properties, issue legal proceeding appoint a receiver etc. to no avail. In Oct, 2011 I wrote to bank asking them to appoint a rent receiver so that at least my liability would not increase further. They ignored letter, but I called and spoke to a manager in legal dept. She said it was a shocking case, and she would call me back within 48 hours. I'm still waiting for that call.

Last July, I finally got granted a divorce and judge ordered that ex must discharge mortgages from rental income. He ignored the order and despite two attachment and committal hearings, he continues to get away with it. It is now over 5 years and bank has issued proceeding on one property and not the other. There have been no payments, tax, NPPR, LPT on either property. When bank issued proceedings, I issued a defence and a counterclaim for bank's negligence and failure to exercise a duty of care. There is currently €2200 rent pm on the properties. The bank made an agreement with ex to accept €550 on apt (the one with court proceedings issued) and €1100 on house. We were in court in May and 2 payments of €550 had been made since March and none on house. The bank asked the judge to strike out proceedings as there was a sustainable arrangement in place that was working. I was speechless, as I had witnessed them reluctantly agreeing to adjournments, where substantial repayments had been maintained in the medium term.

Anyway, I said I did not want proceedings to be struck out as my liability was continuing to grow and that I wanted my counterclaim to be heard. The judge agreed with me and adjourned the case until later this month but ordered the bank to file an affidavit confirming that only €1100 had been paid in 5 years, why they made an agreement without me, why no proceedings had issued on the house and also to serve both sets of tenants with a notice of the situation. Counsel for the bank were not happy bunnies.

We are back in court later this month, and I have still not heard from the bank. They were also ordered to write to me explaining their inaction etc.

I can not figure any of this out and am at my wits end. I have a divorce decree ordering him to pay, but that has been worthless. The bank are willing to leave him hold onto the properties and spend the rent. I hear all the time about tenants losing their homes because of rent increases and yet these are not being repossessed despite not being family homes.

I was speechless when bank tried to strike out the proceedings, I just don't get any of it. Has anyone ever heard of something like this? Am I too close to see the bigger picture? Any advice, fresh perspectives are very welcome. Thanks...if you managed to read all this.

alex03

Just to add, the overall arrears figures on the two properties is now over €150,000 combined.

snubbleste

Eh, you need the legal discussion forum. But thanks for some insight.

alex03

Thanks, and perhaps I do but I was hoping to hear from landlords who may have experience dealing with a bank about arrears.

_Kaiser_

Agree with the above.. this is too complex for this forum I'd think and people can't give legal advice here. You need a good solicitor.

As a side note though, are your tenants aware of this situation or that they could lose their homes here? If not I think they deserve to be told. (EDIT: Sorry, I see the Judge did order that above too).

who_ru

Amoral almost criminal behaviour rewarded by banks at the expense of tax payers and tenants. 100% guaranteed Irish.

The_Conductor

I'm really sorry- you need good legal advice- and not the hypothesizing of people on the internet. OP- I'm speechless having read what you've gone through- and hope it all works out for you- but you urgently need good legal advice.

I unfortunately can't really let your thread run- as any musings here could send you off in a wrong direction and possibly be seriously detrimental to you.

I wish you the very best- and hope that you get sorted.

Best wishes.