A High Court judge has halted a bid by subprime lender Home Funding Corporation Ltd to repossess a couple's home over alleged default on mortgage repayments. The lender claimed, with interest, €1.4 million was now due on a £40,000 loan taken out in 1997.
Ms Justice Isobel Kennedy said the balance of justice favoured refusing the company's application to have the repossession application re-entered against John and Sheila Nolan, Tallaghan, Ballinagare, Castlerea, Co Roscommon.
A delay between 2004 and 2014 by the company in advancing the application was inordinate and inexcusable and the case should be dismissed for want of prosecution, she said.
The Nolans had entered in 1997 into a mortgage agreement with Wise Mortgage Company. The £40,000 loan was to be repaid over 15 years via monthly repayments of £552, amounting to a total £99,399.
Transferred
Their loan was transferred in 1997 to Home Funding Corporation Ltd (now Vivier Mortgages Ltd) and it was alleged the couple stopped making repayments on the loan in 2000.
Home Funding brought proceedings seeking a possession order for their home in 2001 and had asked the court to re-enter the possession application. Its lawyers had written to the couple last year seeking €1.4 million which it alleged was now due, the court heard.
The couple, represented by Peter Bland SC, argued the application to re-enter should be dismissed due to inordinate and inexcusable delay and want of prosecution.
Delay
Home Funding claimed the delay was due to an “oversight”; a receiver being appointed to the company in 2007; and negotiations aimed at settling the matter. It accepted there was delay but argued the balance of justice favoured its application.
The Nolans rejected those reasons and claimed they were prejudiced by the lengthy delay in advancing the repossession proceedings.
In her judgment, Ms Justice Kennedy noted the repossession proceedings were entered in 2001 and Home Funding’s statement of claim and the Nolan’s defence and counterclaim were served in July 2004. In February 2014, nine years and seven months later, the company sought to have the proceedings re-entered.
Oral evidence would have to be given at any hearing of the repossession application and 18 years had passed since the Nolans entered into the mortgage, she said.
Costs were also awarded in favour of the Nolans and a stay on the costs order applies in the event of an appeal.