I have a mortgage with no arrears and no equity if the house is sold the mortgae company would obviously be 2st in line along with the second mortgae holder i pressume. If a third company is also owed money and they file for bankruptcy can this house be seized by the official reciver and sold to pay them off or do they have to get behind the secured lenders?
Hello there - in answer to your question the 1st mortgagee would always be paid first from any sale of the property then the 2nd, 3rd etc in strict order of charge placed, irrespective of whether or not the 3rd charge pushed for a sale (rare this would be agreed by the Judge, if only 3rd charge, but wholly dependant on equity situation - for example the 1st and 2nd charges could be discharged by the potential monies available, and perhaps monies available for the 3rd charge) What ever happens the 1st charge holder would alwaysa be paid in full first before any payment made to subsequent charge holders.
Secured lenders always have priority in the order given by Melanie.
-------------- Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated. Professional advice should always be sought.
I have a mortgage with no arrears and no equity
Posted - 15 June 2012 : 20:22:46
