Challenges delay repossession cases

HOME REPOSSESSION proceedings at the High Court virtually came to a standstill yesterday when only two of the 70 cases listed actually resulted in court orders being granted.

Some of the cases were adjourned pending a ruling on sample legal challenges to be made by Ms Justice Elizabeth Dunne at the end of the month.

It is understood many other cases were adjourned following the updated code of conduct on mortgage arrears introduced by the Financial Regulator.

The code required all lenders to have a mortgage arrears resolution process in place by July 1st.

Of the 70 cases listed yesterday, 41 were being taken by subprime lender Start Mortgages Ltd which sought adjournments in all but two of the cases. Both of the remaining two were adjourned on foot of applications from the defendants.

Ms Justice Dunne said she would give her judgment on the sample legal challenges on July 25th. The challenges were taken by New Beginnings, a group of lawyers and business people who have been working without fee for homeowners in the process of losing their property.

They involved mortgage lenders including Secured Property Loans Ltd, EBS Building Society and GE Capital Woodchester Home Loans Ltd as well as Start Mortgages.

The issues raised included whether or not lenders were entitled to summary possession orders claimed under section 62.7 of the Registration of Title Act 1964 given that the Act had been repealed by section 8 of the Land and Conveyancing Law Reform Act 2009, which came into operation on December 1st, 2009.

In a case taken by GE Capital yesterday, the judge told a husband and wife that they were getting “a temporary reprieve” pending her decision on the sample legal challenges.

The couple had only made six full payments in three years on their mortgage and owed arrears of over €30,000, the court was told. Ms Justice Dunne advised them to make payments while waiting for their case to come up again at the end of the month.

However she did grant an order for possession in a case that could be affected by her ruling on the sample legal challenges after hearing the borrower was “anxious to have the matter dealt with”. She had arrears of over €45,000, with an outstanding balance of almost €300,000.

Counsel for the lender said the woman had requested a two-month stay on the order for repossession, which the judge granted.