The Irish Mail on Sunday 02.09

Irish homes at risk over Spanish mortgages by Warren Swords
(February 2009)

Irish owners struggling to pay mortgages on their Spanish holiday villas now face the prospect of losing their homes in Ireland as lenders in Spain look to pursue bad debts here, a legal expert has warned.

Solicitor Torn McGrath, whose Dublin-based firm specialises in overseas legal services, said foreign banks can obtain a judgement on Irish property 'very easily and swiftly', often within six months. He added "We have no doubt that the banks will pursue remaining debt here. They must persue the debt because they are exposed to their central bank.'

Mr McGrath's warning comes following a wave of repossessions that has led to many homes being slashed in price by up to half.

A combination of banks selling off repossessed houses and british sellers cashing in on the sterling / euro exchange rate has provoked a crash in spains property market.

Inez Rix of Marbella-based Direct Auctions said 9 out of 10 Irish coming to her wanted to sell their property and that the only option for some is either 'the banks take the property or they win the lotto'. She added: 'A lot of Irish are selling because they can't afford the mortgages on their Spanish homes. But some are also struggling with the mortgages on their homes in Ireland, so are selling for that reason.'

According to Miss Rix, banks are selling the properties for as little as 50pc of the original value. She said that Spanish banks are now turning to Irish owners' assets in Ireland and can enforce judgements against Irish homes to recoup the rest of the debt..