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Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: Republic of Ireland Law
Satisfied Customers: 2769
Experience:  Barrister 17 years experience
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Is a bank obliged to stand down a receiver if the reason for

Customer Question

is a bank obliged to stand down a receiver if the reason for his appointment -arrears - have been paid in full
Submitted: 2 years ago.
Category: Republic of Ireland Law
Expert:  Buachaill replied 2 years ago.
1. I regret to say that a bank is not obliged to remove a receiver once all arrears have been paid. This is because the bank is entitled to all the sums outstanding and owing on the debt before the bank is obliged to remove the receiver. Simply paying arrears does not lead to the bank being obliged to remove the receiver. Once a receiver is in, then full repayment of all debts is necessary before a right arises to oust the receiver.
Customer: replied 2 years ago.
thank you.
does this mean that I would have to pay off the mortgage (€150,000 ) before the bank would act? they have told me that they would want me to make six consecutive annuity payments before they would consider it. they would then refer the case to their credit committee but that there were "no guarantees " of a favourable outcome.
This in my view is extremely unfair and punitive. I operate the bungalow as a holiday home and was obliged to cancel all my bookings for this summer. the cost to me was in the region of €10,000,
I accept that I have had my difficulties -the arrears ran to €16,000. However the property is NOT in negative equity. It is worth in the regions of €230,000. At this point I owe nothing on the property. I am not alone in getting into mortgage difficulties and these are straitened times when the bank should be aiding rather than ruining their customers.
Do I have any other recourse?
Customer: replied 2 years ago.
gh
Expert:  Buachaill replied 2 years ago.
2. I regret to say that you do not have any other recourse, other than repaying the mortgage. Once an event of default, such as payment arises and the bank lawfully puts in a receiver, the bank is entitled to insist upon full repayment, or here, a series of payments before they will agree to remove the receiver. Your other alternative is to refinance with a different bank.
Expert:  Buachaill replied 2 years ago.
2. I regret to say that you do not have any other recourse, other than repaying the mortgage. Once an event of default, such as payment arises and the bank lawfully puts in a receiver, the bank is entitled to insist upon full repayment, or here, a series of payments before they will agree to remove the receiver. Your other alternative is to refinance with a different bank.
Customer: replied 2 years ago.
Thank you - i have begun to make the series of repayments requested by the bank and my solicitor will also write to the bank pointing out that the remaining payments will be made and that I have restructured my finances to ensure as far as possible no further defaults.
Is this likely to satisfy the bank? And if they agree to lift the Receiver what is the process and how long is it likely to take?
Expert:  Buachaill replied 2 years ago.
3. I have no way of knowing what will satisfy the bank. That is not a legal question but depends upon the attitude of the official in the bank with whom you are dealing. Secondly, if the bank agrees to remove the receiver it will occur immediately or at the very least, within seven days. The process is quick.
Customer: replied 2 years ago.
Thank you
Finally if a borrower enters the Voluntary Sales process, can he exit it without complications if the house does not sell after a reasonsble period. In the event that the house does not sell for market value, is the bank likely to allow the borrower to return to renting the property which is the only way in which he will be able to repay the mortgage .
Expert:  Buachaill replied 2 years ago.
4. Again this is not a legal question. It depends on the discretion of the bank. There is no hard and fast legal rule which governs the situation. Essentially, once a receiver has been appointed, the bank holds the whip hand and it is up to the bank to decide what criteria satisfy it. The borrower is unable to force the bank's hand once there is money owing on the loan.
Customer: replied 2 years ago.
Thank you.On a different subject .....can u clarify the law, if any, in relation to the following .....A householder lives on a busy main road. Motorists park their cars along the roadside where there are no official restrictions. However many use the roadside as an all-day free parking zone and use the QBC to travel on to the city. This prevents the householder from being able to park immediately outside his premises. In addition there is a constant flow of vehicles as other motorists visit a variety of business premises nearby.Does the affected householder have any entitlement in law to complain to the local authority or gardai about the nuisance factor in so far as the housholder is prevented from utilising the road space outside his property to park his vehicle?In addition, does he have any redress to prevent motorists parking so close to his gateway that it constitutes a serious safety risk as his vision is restricted by the parked vehicles as he emerges fromhis driveway on to the busy roadway and cycle lane.Finally, the volume of traffic on the main road has grown exponentially in recent years to the extent that it now constitutes a seriousimpairment of the quality of life - and enjoyment of their properties and environs - for local residents. Can any action be taken, or law invoked, to bring the matter to the attention of the authorities and to call on them to take steps to improve the situation?
Customer: replied 2 years ago.
You replied
05 June 2015 20:26 EST
Thank you.On a different subject .....can u clarify the law, if any, in relation to the following .....A householder lives on a busy main road. Motorists park their cars along the roadside where there are no official restrictions. However many use the roadside as an all-day free parking zone and use the QBC to travel on to the city. This prevents the householder from being able to park immediately outside his premises. In addition there is a constant flow of vehicles as other motorists visit a variety of business premises nearby.Does the affected householder have any entitlement in law to complain to the local authority or gardai about the nuisance factor in so far as the housholder is prevented from utilising the road space outside his property to park his vehicle?In addition, does he have any redress to prevent motorists parking so close to his gateway that it constitutes a serious safety risk as his vision is restricted by the parked vehicles as he emerges fromhis driveway on to the busy roadway and cycle lane.Finally, the volume of traffic on the main road has grown exponentially in recent years to the extent that it now constitutes a seriousimpairment of the quality of life - and enjoyment of their properties and environs - for local residents. Can any action be taken, or law invoked, to bring the matter to the attention of the authorities and to call on them to take steps to improve the situation?
Expert:  Buachaill replied 2 years ago.
This is a separate question and should be filed as a separate entry on the JustAnswer website.

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