Judgement Mortgage

angelina

New Member
Messages
2
Hi can anyone please advise. I had a jointly owned buy to let repossessed 7 years ago. Bank got a summary judgement for 2.2 million in July 2013 against all parties. They subsequently got judgement mortgages on family homes and other jointly owned apartments. I have now received a summons to attend the district court. My question is 1)why would the bank go back to a court and 2) can a bank enforce a judgement mortgage on a buy to let that is mortgaged with another lender, also 3) can they enforce a judgement mortgage on a property where they are the mortgagor but where the property was never given as security against the repossession. Any help would be greatly appreciated.
 

Palerider

Frequent Poster
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1,383
They are back in Court because you are not engaging, Banks don't go away, they may lie dormant but there is still over €2 million owing and there might be assets available that have over time increased in value.

The Bank stand behind other previously registered charges, they cannot force a sale as holder of a second charge, in practical terms there may not be enough left after first charge holder and costs paid off.

They can seek well charging orders against any property unencumbered that you own, they can force a sale on these.

They can register judgments against any property you jointly own.
 

angelina

New Member
Messages
2
Thank you Palerider. Could a bank force a sale if they have the mortgage on anothe buy to let where there is still 12 years left on the mortgage and was never asked for or given as security against the other loan ?
 

Brendan Burgess

Founder
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37,853
Angelina

You need legal advice on this as you seem to misunderstand the basic principles.

If a bank has a mortgage on your property and you are not paying, you are at risk of losing those.

If you have a buy to let with positive equity, you should be disposing of it to pay your debts.

Brendan
 

The Horseman

Frequent Poster
Messages
268
Thank you Palerider. Could a bank force a sale if they have the mortgage on anothe buy to let where there is still 12 years left on the mortgage and was never asked for or given as security against the other loan ?
The bank can only come after those assets it holds a charge over. The bank can however obtain a charge on any other assets you have and either force a sale or hold the charge (and renew same as necessary) until the property changes hands either by sale or by inheritance until the charge is paid.

If the equity you hold in your assets is greater than the amount outstanding then the bank will either force the sale or renew the charge. Remember you owe €2m and the bank is not going to just forget about it.
 

Palerider

Frequent Poster
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1,383
If you are not in a position to address the debts you should consider an insolvency arrangement sooner rather than later, this is seven years on and this will give you restless nights for a long time to come, time to pull the plaster off and address the issues head on.
 

AineMahon

New Member
Messages
2
To answer your question Angelina. The bank can obtain Judgment against you and then obtain a Judgment mortgage against your Buy to Let property. They can (even as a second or third etc) charge holder force the sale of your buy to let. They would only force this sale if they believed the first charge was less than the value of the property. They use the proceeds of sale to clear the first charge and apply the balance to the judgment obtained against you. Should any balance remain it will go to any junior charge holders and then yourself.
 
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