Will bank make a move?

D

Docket

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Hi

I have been advised by a PIP that an insolvency solution is not workable.

I have unsecured debt of €400k and I have a property with positive equity of about €100,000. The mortgage on the property is held by the same bank to whom I owe the €400k.
I have been paying the mortgage but have made no payment towards the other debt for many years.

I have some health issues so my plan was to sell the property, pay off the mortgage and live off the proceeds of the sale for as long as possible.

My concern is that the bank will move on the proceeds once they are in my account.

Does anybody have any insight regarding what the bank might typically do in this scenario?
(I know it's speculation...just trying to get some idea)

Many thanks for any opinion.
 
Docket said:
My concern is that the bank will move on the proceeds once they are in my account.
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I'm not answering the question you're really asking, but this might help.
Just in relation to the sales process.
You engage a solicitor to act on your behalf. You sell house. Proceeds are transferred to solicitor to discharge mortgage. Solicitor transfers those funds to the mortgage holding bank. They then ask you what to do with remaining funds. You give you current account details - with any bank you want.
Unless the bank secures a judgement mortgage, the solicitor just has to clear the mortgage out of proceeds.
 
Be careful here and talk to your PIP. If your mortgage is "all sums due" the bank may insist on all of the sale proceeds
 
Red Onion and Dazzler123.
Thanks for your replies.

I wasn't familiar with the notion of "all sums due".

Is it the case that all sums owed by me to that particular bank, even those that are totally separate from that mortgage and no matter when or how they arose, are automatically retrievable by the bank from the funds of the sale?
The outstanding unsecured debt arises from a loan that precedes the mortgage debt. Does that make a difference I wonder???

I should say that I don't question the bank's right to go after their money. What I'm really trying to ascertain is how the scenario above would likely play out.
Would it be a certainty that the bank would initiate action as soon as I have sold the property in question?

Thanks again.
 
Last edited:
Thanks @Dazzler123 - I had brain freeze last night!

You'd need to check your original mortgage contract. It might alternatively be worded as 'present and future advances', or security against all liabilities, which covers debts preceding the mortgage.
Best then to talk with you PIP or solicitor.
It's a very common clause. Possibly in all mortgages in some form.

Docket said:
What I'm really trying to ascertain is how the scenario above would likely play out.
Click to expand...
Your solicitor requesting the title deeds and a redemption figure should trigger the action. The bank might possibly delay releasing anything until they get a charge registered if needed, and then they are entitled to the proceeds. So you will know prior to selling the house if the proceeds are being taken by the bank.

Someone who understands the process better than I do will hopefully correct me!
 
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