That’s an interesting point.@Johnno75 thanks, there will be no equity so will the sale be able to go through with the judgement on it as part of a surrender case?
I have no problem with the fact I owe the money, I just hope it won’t impact the surrender as I have no way to pay it back in a lump sum, and am paying an amount per week for years even though they didn’t agree to it.
I’m open to correction, if any conveyancer wants to weigh in, but I’d be surprised if I was way off the mark.That doesn't sound right.
Hi,Hi Jonno
That doesn't sound right.
Woodenelf
Did you talk to a Personal Insolvency Practitioner? You should be looking at a Debt Settlement Arrangement or Bankruptcy.
Brendan
No I didn’t talk to any personal insolvency practitioner.
Banks/Funds routinely sell properties as a Mortgagee in Possession when they have JMs registered on them.When a bank is selling as a mortgagee in possession, I’d say that the same rules apply.
Neither the bank nor the purchaser has any obligation to discharge the judgement mortgage, I assume.
Thanks Jim for the clarification.Correct, neither the bank nor the purchaser has any obligation to discharge the JM provided the property is in negative equity in the "first" mortgage.
The MIP process is "standard" for those Receiverships where the mortgage does not provide "selling powers" to the Receiver. ( It is inexplicable how the lawyers drafted such mortgages years ago!) What happens in these cases is that the Receiver "markets" the property for sale, agrees sales terms, and then, at the last minute, the bank steps in and sells as MIP.
There are two possible drawbacks to the banks/funds selling as MIPs. 1) Whilst the property is under their control as MIP, they are responsible for any "insurance" issues. 2) If there is a CGT liability arising on the sale they have to discharge the CGT.
Jim Stafford
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