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second charge
joan1920
Posts: 43 Forumite
i have a second charge on a property to the value of £30.500 the property is up for sale and there is no equity in the property there is a shortfall to the first charge also as £100.000 owed and property up for sale at £84.950 can i stop the sale or can the vendor apply to move the charge to another one of his properties? can i oppose this and if so is he obligated to honour the contract we have with him that states all monies due to me will be paid on or before the 5 year term of our agreement or before if the house is sold within 10 days on completion of sale
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Comments
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The charge cannot be moved to another property without your agreement.
No buyer will purchase the property unless the charge is removed (ie you are paid and agree to remove the charge).
The only risk is if the owner/debtor goes bankrupt and the Official Receiver takes over the property and sells it. You will then be low down on the list of creditors who the OR will pay with the proceeds of the sale (and other assets). Or at least lower down than the owner of the first charge.
(I think.... :eek: )0 -
I assume the house has been reposessed. If the lender is selling the property, will they not require your written permission to remove the charge before it can be sold?0
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I assume the house has been reposessed. If the lender is selling the property, will they not require your written permission to remove the charge before it can be sold?
OP does not make clear who is selling:
* the original owner/debtor
* the mortgage lender following repossession
* the Official Receiver following bankrupcy0 -
I assume the house has been reposessed. If the lender is selling the property, will they not require your written permission to remove the charge before it can be sold?
The mortgage lender have insructed the recievers to sell i think i can oppose the sale i think because i have a charge0 -
If the first mortgage lender is selling, as second mortgagee you are in the *****. That's the risk you take as second mortgagee.
They can pass a good title without consulting you. All they have to do is give you any money left over, if there is any, and they have notice of your charge.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Richard_Webster wrote: »If the first mortgage lender is selling, as second mortgagee you are in the *****. That's the risk you take as second mortgagee.
They can pass a good title without consulting you. All they have to do is give you any money left over, if there is any, and they have notice of your charge.
Thank you for your feedback very helpfull just spoke to land registry and was told the same looks like i will affter sue him0 -
The mortgage lender have insructed the recievers to sell i think i can oppose the sale i think because i have a charge
When you say receivers? is the person bankrupt? or do you mean receivers of some other sort? or do you just mean that the mortgage company have instructed their solicitors to sell the propertyHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
The bank have instructed ajm assetes to sell the property i have the second charge i have been told i cant stop the bank from selling there is no equtity in the property so i want recive any money the only way is to sue any help would be great thanks0
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If the property is repo'd, the owner is unlikely to have any funds, otherwise they would have paid the mortgage. So if you sue, you might be throwing good money over bad. I suggest you wait a few years and see if your borrower starts to look rich again.The bank have instructed ajm assetes to sell the property i have the second charge i have been told i cant stop the bank from selling there is no equtity in the property so i want recive any money the only way is to sue any help would be great thanksHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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