Might be better in the legal forum but anyway....I'm curious as to what legal mechanism allows a bank to seize a property for failure to pay a loan secured on it in a relatively short timeframe
If someone has an outstanding debt of 100k (in your example), very often it is pointless pursuing the person unless they are a "mark", i.e. they have something worth going after. If you are their creditor, the only asset worth chasing might be the debtors house. However, since you dont own it (unlike the bank) you cannot force them to part with it.
Thanks for all the replies. Very interested to hear that well charging orders are on the increase j26. I would not like to force the sale of a family home either but when someone owes you money and simply refuses to pay, there must be a deterent to this sort of behaviour. What is the difference between a judgement mortgage and a well charging order j26? Which one gets your name on their deeds?Not strictly true. If a judgment is given in court, and if the person still fails to pay, the creditor can register a judgment mortgage, and subsequently can obtain a Well Charging order which charges the property and gives the creditor similar rights to a mortgagee. After that the creditor just needs an order for possession and sale.
So you can put your house at risk with personal debt (although admittedly judges are not keen to throw someone out of their home)
The number of Well Charging orders is increasing at the moment btw.
The subprime lenders will literally run to the high court as soon as 1 payment is missed.Can you give an example of a bank repossessing in a short timeframe? Banks actually hate going after debt in this manner, particularly if it's the family home, they hate the publicity.
Thanks for all the replies. Very interested to hear that well charging orders are on the increase j26. I would not like to force the sale of a family home either but when someone owes you money and simply refuses to pay, there must be a deterent to this sort of behaviour. What is the difference between a judgement mortgage and a well charging order j26? Which one gets your name on their deeds?
The subprime lenders will literally run to the high court as soon as 1 payment is missed.
It is in their contracts that they can begin legal proceedings if 1 payment is missed. They have absolutely no compassion.
You wouldn't be reading The IRISH Daily Mail by any means, now would you?Might be better in the legal forum but anyway....I'm curious as to what legal mechanism allows a bank to seize a property for failure to pay a loan secured on it in a relatively short timeframe when other civil debts in this country are nigh on impossible to settle (from the creditors perspective). In particular, tenants in breach of their lease are able to sit in a property for literally years before an ejectment order is made. I'm not moaning about banks, I'm moaning that it is so difficult for companies and individuals to secure payment for debts due or indeed to regain control of their own property from a defaulting tenant! What legal mechanism do banks use that is different from any other creditor? Could you theoretically lease a property to an individual and secure the rent due on their own private property (I'm thinking no)?
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