Buying a house with judgment mortgages against it.

I am ready to buy a house I have been watching for 4 years, and have life assurance and mortgage sorted.

The house is being sold by a mortgage company.

Problem is, there are a number of judgement mortgages against it, all filed before the new 2009 legislation. ( I have no legal training so please bear with me.)

If a house is bought by a new owner, do the judgement mortgages on the building lapse, or will they carry to the new owners?

Can a bank give a mortgage for this house, or will their mortgage be junior to preexisting judgement mortgages?

Our solicitor does not seem confident either way, and we are getting differing legal opinion from friends.

Our fear is that the situation could become a nightmare once we have committed to buy and are unable to back out.

Can the title be registered clean? If not, our bank may refuse to provide the mortgage.

Does anyone here have experience with judgement mortgages?

Thanks.

My understanding was that the judgements should be discharged from the sale price

You need to put more pressure on your solicitor to get this sorted out, they should be the experts

I am under the impression that the sale price would not fully pay the first ranking mortgage, so the judgement mortgages would be unpaid.

Reading previous posting regarding judgement mortgages, we are playing dice here.

"If a house is bought by a new owner, do the judgement mortgages on the building lapse, or will they carry to the new owners?"

They carry to the new owners unless all of the creditors agree to remove them.

"Can a bank give a mortgage for this house, or will their mortgage be junior to preexisting judgement mortgages?"

Yes. But only if the judgment mortgages and the current mortgage are discharged.

"Our solicitor does not seem confident either way, and we are getting differing legal opinion from friends."

Ignore your friends - unless they know what they are talking about. Your solicitor is probably not being given any guarantee (by the vendor) that all of the judgment mortgages can or will be cleared off the title on closing. Therefore they ( and you) cannot be certain that all of the mortgages will be cleared and that your new mortgagee will get clear title. Your own bank has no interest (nor should you) in taking on someone else's problems.

"Our fear is that the situation could become a nightmare once we have committed to buy and are unable to back out."

You are right.

"Can the title be registered clean? If not, our bank may refuse to provide the mortgage. "

Only if the judgment mortgages and the current mortgage are discharged.

Its not the answer you want but perhaps you should be looking at different properties which do not have these problems.

mf