A COUPLE who bought a house in Malahide, Co Dublin, three years ago for €1.8 million, are unable to meet the €4,500 monthly mortgage repayments, a court heard yesterday.
Judge Jacqueline Linnane was told 23 Abbots Hill, Malahide, Co Dublin, would in today's market be worth considerably less.
Counsel for First Active Building Society, which is seeking to repossess the house from Michael and Paula O'Connor, said the balance on the mortgage was €1,124,000.
He said there had been no monthly mortgage repayments of €4,500 made since December 2007 when a last lump payment of €26,000 had been made. Arrears amounted to €19,000.
Judge Linnane said proceedings for possession of 23 Abbots Hill by the building society, which were issued in June last year, had been adjourned in December on the basis that a bank standing order would be put in place for the monthly repayments. This had not been done.
She said Mr O'Connor had also been allowed to proceed with the sale of another property, 9 Castlefield Manor, Malahide, on the basis that equity from this sale would be used to meet arrears on the Abbots Hill house.
The court heard that 9 Castlefield Manor, on which there was a Bank of Scotland mortgage of €700,000 outstanding, had now been on the market for a year and the asking price had been reduced from €1.3 million to €1.2 million.
The five bedroom house is on sale and seeking offers in excess of €1.2 million.
Judge Linnane was told there was no proposal regarding any sale of the Abbots Hill house.
The court heard there was one party interested in buying 9 Castlefield Manor and would be returning for a second viewing.
The judge said it was crystal clear the defendants were unable to service the mortgage and there was no indication that Mr O'Connor, who was selling the second house, was capable of meeting the €4,500 repayments.
She adjourned the building society's application for repossession and directed that Michael and Paula O'Connor be informed they both must attend the next court hearing.