This comment appears very strange and improbable. Yes, a JM becomes unenforceable after 12 years, but I haven't herad of any change in legislation where it is taken off the Folio if the property changes hands. If you still want to progress the sale, get advice from another solicitor.when I buy the property the judgement mortgage will "fall away"
This is, I assume, in circumstances where the mortgagee sells in possession and normally their charge isnt fully satisfied by the sale proceeds- ie there is nothing left for the judgement mortgage or any charge registered after the first charge.
That is exactly the calculation I did on the property I wanted to bid on. Trouble is, it made the property expensive relative to similar property in the area hence I didnt bid. Reminded me of the madness in the Celtic Tiger era where people were buying investment property with a nominal yield which doesnt make sense.....If the judgment mortgage is still valid, one could simply factor it into one's purchase price.
For example:
You can buy the property for €170k and then pay €30k to the holder of the judgment mortgage.Property value| €200k
Judgment mortgage|€30k
net property value|€170k
So if you were prepared to pay €160k for a €200k property, you can now adjust your bid down to €130k, pay €30k to the holder of the judgment mortgage and still get a bargain.
Brendan
If BoS has a mortgage of €300k and MBNA has a judgment mortgage of €20k. If the proceeds are €200k, does the MBNA judgment mortgage "fall away" or does it still attach to the property?
As I understand it, a purchaser for value from a Receiver in possession causes subsequent judgements to transfer to the proceeds of the sale. The purchaser obtains a clean title. The receiver has to account to the judgement mortgage holder for any monies left over after his appointer is paid off.
Receivers seem to be slow to go about the latter, as seemingly it partly defeats the purpose of the bank having appointed the receiver, but is ultimately far better for the purchaser and removes the uncertainties that deter purchasers.
.
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