Eileen Tynan of Rose Villa House, Old Callan Road, Kilkenny had sought an injunction to prevent the county registrar from evicting her from her home.
Start Mortgages was granted an order for possession of the former local authority house by the High Court in October 2008 after Ms Tynan's daughter Veronica fell into arrears with the mortgage.
Veronica Tynan bought the former local authority house from her parents after they separated in 1999. She and her mother continued to live there.
Veronica became ill in 2004 and another sister briefly took over the mortgage, but Veronica took out another mortgage on the property with Start Mortgages in 2005.
In 2009, Eileen Tynan suffered a heart attack and the court was told Veronica Tynan had to leave her job at the CityWest Hotel to care for her.
This led to her falling into arrears with Start Mortgages again.
The court heard there are arrears of almost €50,000 on the mortgage. The total amount owed to Start is almost €210,000.
The house was valued earlier this year at €155,000.
Today, Ms Justice Mary Laffoy said it was tragic that Ms Tynan would have to leave the home and the neighbourhood she had lived in for almost 40 years.
But the judge said she had come to the conclusion that she does not have a right of residence in the house which has priority over Start Mortgages' charge.
The judge found that Start Mortgages had received a letter from Ms Tynan's solicitor in 2005, saying that she had been given independent legal advice about the implications of executing a deed of confirmation when her daughter took out the mortgage with Start.
Ms Tynan claims she was not made aware she could lose her home, but the court ruled Start were entitled to rely on the letter from an independent solicitor.
