Will bank enforce judgement on home

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joanj

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Bank of Ireland has informed me that they are putting a judgement on my home,I sold an investment property that was in negative equity to the tune of in excess of 100,000,I made an offer of 10,000 that a family member was going to lend me but the offer was rejected.my house has a mortgage of €60,000 with value of €150,000,I am on interest only payment for 5 years.i understand a judgement will die after 12 years but at that stage assuming I can resume a full mortgage payment I will owe little on the house.what is the likelihood of the bank enforcing a sale before the 12 years are up.nither myself or my husband have a pension so the thoughts of being put out of our home is calling me great distress.any advice please.
 
Does anyone have experience of having a judgement put on their house in relation to residual debt after selling an investment property.Loan is with a different lender. Home mortgage is in positive equity.Can they force you to sell your home.
 
I'm pretty sure they can't and if they can, I've never heard of anyone who were forced to. It's basically covering themselves should you sell for any reason.
 
Yes both investment property and family home in both names.I know a judgement runs out after 12 years but it's a huge threat hanging over us that's there's even a possibility that bank could call it in by forcing us to sell our home,
 
joanj said:
Loan is with a different lender....Can they force you to sell your home.
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As far as I know the banks do not generally force homes to be sold to satisfy judgement mortgages.

In your case your home mortgage is with Bank A and the judgement mortgage is with bank B.

Bank B cannot force the sale of your home without the agreement of Bank A who have a first charge. Again this is as far as I know, I am not a solicitor. Be sure that the home mortgage is not cleared within the 12 years.
 
I only owe about €60,000 on my house so in 12 years no matter how the payments are stretched out there will be very little owed on it,I would actually be better off if I had a bigger mortgage.Its a nitemare of a situation but they would not agree to full and final settlement when the commercial property was sold.I made a small offer plus full proceeds of the sale but it was refused so there are no other options open to me unfortunately.
 
Contact your lender with the residual debt, provide them with an honest assessment of your joint assets and liabilities, income and expenditure, then make that offer again in writing or offer an instalment payment.
 
Palerider said:
Contact your lender with the residual debt, provide them with an honest assessment of your joint assets and liabilities, income and expenditure, then make that offer again in writing or offer an instalment payment.
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Sorry but is bad advice.

Your lender has got a judgement mortgage in place on your home for the residual debt due on a now sold buy to let.

There is nothing to negotiate. The lender can if they wish try to force the sale of your home to satisfy the judgement mortgage.

There are a number of obstacles in their way in doing this. A judge would have to agree to make you homeless, the primary mortgage holder would have first claim on the sale proceeds, the legal costs to the lender would be significant. As far as I know no bank in the country has a policy of trying to force a sale in cases like this.

To get where you are now must have been the result of a long process. That process is now finished. The result is that the bank has a judgement mortgage.

The bank can if they wish open a new process to force the sale of your home. It is unlikely that they will. But you should do nothing at this point. There is nothing for you to do.

Contacting them with some type of plan would be very foolish.

Thats my opinion.
 
Your are in a slightly better position as your home mortgage is with a different lender,and if you alone were on the hook for the residual debt the judgement mortgage would be worthless.I agree fully with cremeegg do nothing it's highly unlikely the lender will do anything.
 
A couple of thoughts..

1) Before BOI register a judgement on you family home they need to obtain judgement. Probably in the High Court as the shortfall involved (€100k) is above Circuit Court jurisdiction. Has BOI obtained judgement against you? Or are they just threatening to do so?

2) Jim Stafford suggests that Judgement Mortgages are of limited value in this thread:

https://www.askaboutmoney.com/threads/judgment-mortgages-on-family-homes-have-little-value.199702/

3) If a Judgement Mortgage has been registered, Jim Stafford suggests that it may be possible to get it removed by obtaining a Protective Certificate but that this must be done within 3 months of the registration. See this thread:

https://www.askaboutmoney.com/threa...een-given-notice-of-a-court-proceeding.205302

At the risk of stating the obvious, the overall aim should be to keep you in your family home with the least amount of risk and stress. You've been through enough already.

Best wishes.
 
Palerider,I have gone through the process already of sending in assessment of income and expenditure and details of assets and liabilities and made an offer that was rejected,

TLO, The bank have not obtained the judgement yet, I pushed them for an answer before Christmas and was told this is the route they are taking and that a letter will be sent out to me. I have requested a face to face meeting but haven't received an answer on that yet.I am trying to get a loan from my credit union to up my offer but I doubt it will be accepted as there will still be a signifient shortfall.
 
My friend is in much the same position as joanj.Home mortgage with Ulster but BOI now going for judgement re residual debt balance on investment property loan.However my friends wife was not party to BOI loan.
As long as the home loan is serviced BOI can do NOTHING.Ulster allowed him go from Capital/interest to Interest only which ensures it wont be paid off until after the 12th year.
 
I'm with the same lenders and will be dealing with home loan in the same way but as balance on home loan is less than 60,000 the balance will be small enough in 12 yrs time but hopefully will deter from Boi pushing for a sale.

Thank you to everyone that has commented and given me advice on this thread.
 
Clonback said:
My friend is in much the same position as joanj.Home mortgage with Ulster but BOI now going for judgement re residual debt balance on investment property loan.However my friends wife was not party to BOI loan.
As long as the home loan is serviced BOI can do NOTHING.Ulster allowed him go from Capital/interest to Interest only which ensures it wont be paid off until after the 12th year.
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Even if the home loan was paid off in the morning a judgement mortgage on a family home where the wife is not party to the other debt it is worthless.[/QUOTE]
 
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Unfortunately both myself and my husband are party to both the residual debt and the family home mortgage.
 
Peoples opinion vary, Creemegg states that there is a judgment on the property but you have not said so, right now there is no judgment registered, just the threat of one.

You want peace of mind and an understanding of how the next 12 years might be for you, you are not likely to get everything you want without a plan to discharge your debt with the lender.

Make contact again and go to meet your lender, it is clear to me that you want to address this fully, that is admirable, it seems many in the same situation try evasive manoeuvres in the hope it goes away.

Ultimately the lender can't get what isn't there but you are on the hook for the residual debt, you want to address it, you need peace of mind so press on with your efforts.

Good luck to you.
 
Thanks Palerider,hopefully they will agree to meet me to discuss a solution that will give me closure with them accepting a payment plan or lump sum offered rather than the threat hanging over us for 12 yrs and them possibly getting no money at the end of it,wouldn't make sense for anyone.
 
joanj I don't think you should approach BOI at this stage.Before they get their judgement they have to engage Solicitors to write to you then issue you both with high court summons.My feeling is they are trying to frighten you to obtain a higher settlement than you can afford.Fold your arms for the moment and wait to see if they advance their threat.You can always engage at a later stage.
 
But can you still negotiate once solicitors become involved or is it too late ?
 
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