One of the curious aspects of the bursting of the property bubble here has been the very low rate of repossession (<500 per year) and this phenomenon has been examined here before. As reported by the Independent, yesterday saw 75 repossession applications being dealt with in one day at the High Court where in two cases at least, subprime lenders lending at 8-10% had properties repossessed in rural locations.
Now the number of applications will not convert 100% into repossessions but it was one of the busiest days at the High Court. “What is unnatural will not endure” said German Chancellor Konrad Adenauer in 1963 at the sight of the Berlin Wall. At some point arrears in substantial mortgages with interest rates of 8%+ on property that has dropped by 35-50% in value will need to be addressed – not confronting the problem is “unnatural”.
Elsewhere it was a busy day at the Commercial Court yesterday where several banks were seeking judgements in respect of €150m of loans, most in relation to property according to the Examiner. Summary judgement in the sum of €35m was awarded by Mr Justice Peter Kelly in the case of a Limerick developer, Gerard Clohessy, in respect of developments at Evanwood, Drominbeg Housing Estate and other properties in Rhebogue. Builders Martin Fox and Gareth Duffy had summary judgement of €3.2m awarded against them – they represented themselves and claimed the sum owing to the bank (ACC) would have been substantially less if they had been allowed sell the properties. The biggest case involvinmg €63m was in respect of Cork developers which was deferred to Friday.
NAMA Wine Lake 