IN the most recent sitting of Kilkenny Circuit court there were seven cases taken by a range of mortgage brokers seeking repossession orders against mortgage holders in Kilkenny.
Some of the houses that were being repossessed were family homes and the repossession will have a serious effect on their home lives. EBS, AIB Mortgage bank and Spring Board mortgages were all on the court list seeking repossession orders against indebted home owners.
The Money Advice and Budgeting Service advises that people should try and engage with their lenders if at all possible. Micheal Saunders of the Kilkenny branch of MABS said “Some people stick their heads into the sand when it comes to repossession, that is exactly what not to do.”
Mr Saunders said that since January 1, 2011 a code of practice has been in place that forces banks to engage with customers either through MABS or independently. The code of practices means that banks must now engage with lenders in arrears before pursuing court orders against them. This legislation only applies to case that have been taken after January 1, 2011. MABS have produced a booklet to help people with mortgage arrears and they will take clients through a 12 page financial assessment that will help them avoid appearing in court.
Mr Saunders explained that even when mortgage lenders secure judgements against mortgage holders in arrears the judgements can accrue compound interest at a rate of 12%.
A spokesperson for the ESB said that the they attempt to resolve issues before taking court proceedings. “At EBS, we have a long-standing tradition of working with our customers through the life of their mortgage. We are committed to offering all the support we can to customers who are finding it difficult to meet their financial obligations. The EBS Process for Arrears Management is in line with Industry Practice, which is in line with the Code of Practice for Arrears Management,” the spokesperson said.