Retired Cork Couple Face Eviction Over Endowment Mortgage Shortfall

A retired Cork couple face eviction over an endowment mortgage shortfall caused by the 2008 economic crisis

The High Court heard that Reginald and Teresa Hayes, of Rathpeacon, on the Mallow Road, got an €89,000 endowment mortgage from AIB in 1991. 

 

However, when their policy matured in 2011, the value on maturity was just €55,000 leaving the couple with a €45,000 shortfall on the capital sum due on their mortgage

 

Talks between Reginald Hayes and an official at the bank's debt recovery section led to an agreement that the debt would be settled by paying over the encashment value of the endowment policy along with another €4,000.

 

The bank later said the official had no authority to do this and sued. It got an order for possession of their home in the Circuit Court which the couple appealed to the High Court.

 

In the High Court Mr Justice Seamus Noonan said that it was not an enforceable agreement, however he put a stay on the possession order for 12 months and also made no order as to legal costs which means both sides have to pay their own costs of both the Circuit and High Court hearings.

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