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Family joy as daughter buys back house taken over by bank (Ireland)
Topic Started: 29 May 2012, 07:27 PM (1,426 Views)
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Family's joy as daughter buys back house taken over by bank

By Charlie Weston and Colm Kelpie
Wednesday May 23 2012

AN EMOTIONAL woman has bought back a house that had been repossessed by a lender from her brother -- for a quarter of the boom-era value.

It is one of the first instances of its kind where a close relative has publicly bought back a property after a bank took possession of it.

Seamus Farrelly had re-mortgaged the Co Westmeath house, which was estimated to be worth about €300,000 during the boom, and yesterday it was bought for €76,000 by his sister Orla Mulvey at an auction in Dublin.

It is understood the family had offered €20,000 to sub-prime lender GE Money for the house, which rejected the offer but allowed the family buy the property at auction.

The Irish Independent also understands GE Money intends to pursue the father for the balance of the mortgage.

The saga began when Mr Farrelly found himself unable to meet the high interest payments charged by the subprime lender as the economy collapsed.

Ms Mulvey made an emotional appeal to those at the Merlin Auction in Dublin to be allowed to buy back the Castlepollard, Co Westmeath, property for her family.

The €76,000 sale price was €6,000 above the reserve.

Ms Mulvey said her family was "very happy".

"All the land around the house is my father's land," Ms Mulvey said. "He remortgaged the house to buy a building site. I'm delighted. I can't believe it."

Estate agents yesterday estimated the property's value during the boom at about €300,000

Ms Mulvey ended up as the only bidder after another person interested in buying the large house withdrew.

Property expert Carol Tallon said the sale of the property to a related party would have to have been agreed by GE Money for it to be allowed into the auction.

"If the lender felt it was being outsmarted by a connected party it would have pulled the property out of the auction," she said.

Ms Tallon, whose firms Buyers' Broker represents home buyers, said more and more repossessed properties were being bought by family members, with the agreement of banks.

Personal

"An agreed debt write-off would be in place before the property would go to auction. But no one is getting off scott-free. Lenders always put in place provision for a personal loan of €30,000 to €40,000. Whether they pursue this or not, is another matter."

The Castlepollard property was built by Seamus Farrelly. When the farmer lost possession of the house there was a dispute about access to it, while the auction was told by Ms Mulvey that there was no running water.

This complicated the sale of the property to those outside the family.

Westmeath estate agent Aidan Davitt said the house could have been sold for at least €140,000 on the open market.

The Templanstown, Castlepollard house was one of only five properties to sell at auction and one of only four whose bidding exceeded its guide price.

A further 13 failed to sell but the auctioneers are hopeful of concluding sales and have entered negotiations with most of the highest bidders.

Denis Mahon bought a three-bedroom house in Monasterevin, Co Kildare, for €86,000 -- €6,000 more than the reserve price.

Mr Mahon said he and his fiance had been waiting to buy for a number of years.

A story published yesterday erroneously stated that Ms Mulvey had bought back a property repossessed from her father, Michael Farrelly. In fact the house was repossessed from her brother Seamus Farrelly. We are happy to clarify this matter.

- Charlie Weston and Colm Kelpie

Read more: http://www.independent.ie/business/personal-finance/property-mortgages/familys-joy-as-daughter-buys-back-house-taken-over-by-bank-3116945.html
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TED BULLPIT
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See , there is some light at the end of the tunnel. House prices now down 75% in Irelands capital city. So if you had of waited a couple of years you can now buy four houses for the price of one a few years ago, should be good for the potfolio of those who waited not for those that jumped on the overinflated sinking ship.
There will be some brilliant opportunities when we see some simliar discounts here ;)
Good things come to those that wait and were not fooled by the bs, who were you :bye:
And dont worry there were plenty over there that thought it could not happen , they jumped on this sinking ship, thinking that if they did not they would have been priced out forever. They levereged to the eyeballs and have niw been smashed, sound like anybody you know, a few names ring to mind from our forum.
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NotFooled
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TED BULLPIT
30 May 2012, 08:07 AM
See , there is some light at the end of the tunnel.
But how long are you prepared to wait? It looks like Australia will ride out the current worldwide economic downturn quite ok. Then we'll be well placed to take advantage of demand for resources such as LNG and minerals as things pick up. Are you prepared to wait another 10 or 20 years for the next chance of a downturn?
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rob88
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NotFooled
30 May 2012, 09:46 AM
But how long are you prepared to wait? It looks like Australia will ride out the current worldwide economic downturn quite ok. Then we'll be well placed to take advantage of demand for resources such as LNG and minerals as things pick up. Are you prepared to wait another 10 or 20 years for the next chance of a downturn?
The property market isn't as simple as that. Things picking up in the wider economy wont necessarily protect the property market. In the US the property downturn wasn't caused by an economic downturn - it was the other way round. Booming commodity prices could drive the dollar up causing job losses in manufacturing, tourism and retail, which employ 10x as many people as mining. Or, a booming economy could drive interest rates up and this could trigger a property collapse. Or, maybe property prices will hold up. The property and stock markets are complicated beasts. They are driven more by emotion than fundamentals.
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