Selling House with Judgement Mortgage

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Olady1

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I jointly own a house with my spouse, which we would like to sell. I currently have two judgement mortgages which are only against me from a failed business, one is from Revenue and the other is an individual. There is currently a mortgage on the property too. My question is, can we sell the property with the judgement mortgages and pay them off with the sale proceeds of the property ?
 
yes is the simple answer, assuming there is sufficient to clear everything - your solicitor will deal with paying the debts from the sale proceeds.
 
IANAL, but...

Say the house is worth €400k
And the mortgage is €300k
And the two judgement mortgages are €80k.

I think that your wife would be entitled to her €50k of equity and the remaining €50k would go towards the judgement mortgages.

But check this with your solicitor.

However if the total equity is €300k and the judgements against you are for €50k, then your wife would get her €150k and you would get €100k.

Brendan
 
IANAL either.

Why would the holders of the judgement mortgages not get their money? esp if its Revenue that hold the charge.

And assuming the joint owners are married & intend to remain so why would the proceeds be paid separately?
 
DannyBoyD said:
I would have thought Revenue at least get their money after the bank?
Click to expand...
Yes they do. But as he is 50% owner, they can only claim from 50% of the residual value after the mortgage is paid off.

So 400k sale, 200k mortgage, of the 200k balance, 100k is his wife's and 100k is his in relation to the debt that he carries.

I would get it checked out, but many years ago I was in a similar situation, but no wife at the time.
 
The first question you have to ask yourself is whether the JMs are outside the Statute of Limitations (30 years for Revenue and 12 years for others). If you are currently close to the 12 years it might be worthwhile waiting.

Experienced solicitors acting for judgment creditors know that it is virtually impossible for a Judgment Mortgage creditor to force the sale of a family home. Before selling you should approach the private JM and negotiate a settlement with them. Their solicitor will generally advise them to negotiate.

If you have other debts you should consider a PIA.

Jim Stafford
 
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