Re: Re: Were You a victim of Grant?
By Myles BUCHANAN
Wednesday February 03 2010
A WICKLOW architect has been ordered to pay a â‚¬ 663,000 debt on his re-possessed house in Newtownmountkennedy.
David Grant has been ordered by the High Court to pay ICS Building Society the remainder of a mortgage on the Newtown property even though it seized it back from him.
Mr. Grant’s investment property was already repossessed after he missed mortgage payments.
Mr. Grant had appealed to the High Court, claiming the bank’s loan to him was ‘reckless’ and its claim ‘unfair.’ He also asked why he should be asked to repay the full loan when the banks were being bailed out by taxpayers’ money.
High Court Judge, Peter Charleton, said both Mr. Grant and ICS had taken an ‘overvalued view’ over the value of the house and land.
Mr. Grant bought the property in 2002 for â‚¬372,033 with the intention of building a housing estate. In 2003 he secured a â‚¬ 788,000 loan from ICS in 2003 and borrowed a further â‚¬ 92,000 in 2004. The loans were secured through a mortgage on the property.
By 2007 â‚¬ 811,029 was owed and in December of 2008 ICS repossess the property. It was sold last September for â‚¬ 355,000. The Master of the High Court granted ICS judgement for â‚¬ 1,007,103, less the sale proceeds.
Mr. Grant said he considered the investment to be ‘ sound, prudent and wise’ when he borrowed the money.
He had a legitimate expectation that he would be able to develop the property so he could make his repayments and ultimately make a profit.
Judge Charleton, however, said it wasn’t accurate to claim a mortgage was effectively a promise that, in the event of a default, the bank would simply sell off the property and write off the rest of the debt.
He added that ICS had used a ‘serious auctioneer’ who secured the ‘best price reasonably to be obtained’ in 2009.
He felt the low selling price had ‘more to do with domestic lack of prudence’ than Mr. Grant’s claim of a ‘major, economic and financial worldwide collapse.’
– Myles BUCHANAN
ONQ, looks like you’ll have to e-mail the Independent as well!