A house and five acres in Howth is about to go up for auction. If you lived there, you'd have the likes of Riverdance's Moya Doherty and John McColgan as neighbors. Good location, you'd say. Add in a splendid view of Dublin Bay and a private beach, and you're looking to secure a mortgage already.
Sadly, solicitor Michael Lynn must sell his dream home, which he purchased only last year. As it turns out, he has three or possibly four mortgages taken out for the property, which he bought for EU5 million. The bank will start bids at EU4.5 million and hope to get some of their money back. A couple of other banks are still in court, hoping to get some sort of judgment against Mr. Lynn so that they, too, can get a few pennies back on their loaned euros.
The bargain price reflects the sorry state of the home, which is in the midst of a major remodeling that involved the removal of internal walls. To say that the place needs work is a bit of an understatement. However, the grounds are splendid and the house was known for its gardens. Having an address in Howth tells the world that you've arrived, you're successful, and such a bragging point will have to be desirable to you, the potential buyer, because that's about all you'd have. The house is not inhabitable.
Mr. Lynn is around EU70 million in arrears on a number of mortgages taken on a several properties. As a solicitor, he was able to take advantage of a lack of regulation and oversight of the property conveyance system, building up a sizable debt portfolio by mortgaging the same parcel over and over again. What better way to fund your lavish lifestyle than at the expense of others?
Who are the others? They would be the average, ordinary people who go to the bank to obtain a mortgage and can't get one because credit is too tight because too many mortgages are in default and there's not enough money to go around.
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