# Judgement Mortgage/jointly owned property



## Sorrento (30 Oct 2015)

I bought a house with a relative for which we put up 50% of the equity on purchase over 70% of which was provided by me. Unbeknownst to me his loans for boat, cars, holidays other 'investment' properties were all being ignored and to cut a long life on the hog story short, there are judgement mortgages littering the deeds from banks, revenue commissioners, finance houses etc.

I have been paying the mortgage on my own for the couple of few years since taking over my relative's 'share' of the property which was in negative equity at the time of the agreement and in addition, had several JMs on it. My relatives name remains on the deeds because the bank refused to sign the loan over to me. I think that may change now as he is clearly a liability.

I am so stressed as clearly this person intends to evade all their financial responsibility as judgements are continuing to mount. I have a child to support too.  If I go to court and seek legal transfer it will be complicated (and scarily expensive) because all the judgement holders get called in. There is also a risk that the judgement holders suspect fraudulent transfer. I did take the precaution at the time of getting the house valued and my brothers share would not then or now cover the judgements. 

Any advice on how I get through to end this nightmare is welcome. It is as if he is vindictively accumulating debts because he knows they all land on the house - he works but has made himself self-employed presumably to avoid being garnished, and yes there are no words to describe my view of him.


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## 44brendan (30 Oct 2015)

While the JM's are registered against the property they are only valid against the share of the property owned by your relative. Assuming that this is a joint tenancy rather than a tenancy in common there is likely to be proof required as to how the property ownership is shared. While you are currently paying the mortgage that does not automatically entitle you to any higher share of the property. This could only be decided by agreement or given the judgments registered more likely a Court decision.
You need advice from a good solicitor as to how you should proceed.


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## Jim Stafford (30 Oct 2015)

Who is occupying the house?

Do you want to retain the house or sell it?

if the house is rented, what rent is it producing?

It is very unlikely that any Judgment Creditor will seek a well charging order to have the house sold, particularly if it is your family home.  In the meantime, any judgment mortgage  falls away after 12 years.

As 44brendan suggests, your ultimate share of the property may have to be determined by the Courts. The Land and Conveyancing Law Reform Act 2009 give the courts great discretion on how to partition properties.  Given that you paid over 70% of the equity, and given that you are now paying the full mortgage, then your beneficial interest of the property will be greater than 70%. 

In the meantime, you should keep detailed documentary records of what you paid etc.

Jim Stafford


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## Sorrento (31 Oct 2015)

I want to live in the house and pay down the mortgage - again am worried that paying mortgage increases equity and incentive for creditors to act. 

My biggest worry is that JMs will keep coming while property is in two names. Maybe I will ask solicitor to write to them letting them know the equity situation and that I am applying for a transfer


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## Sorrento (31 Oct 2015)

It strikes me as very strange that irish law does not protect joint owners at all - while I can see that creditors should be paid on sale if there is equity.

However, the fact that a house you have put all life savings and proceeds of previous home into can be threatened with sale because of the actions of one party is very wrong.

No matter what I do huge outlays for legal fees are a concern unless I sit and wait hoping the JMs stop (very unlikely) as this person doing nothing to deal with existing ones and is building up more.

I guess I could take bankruptcy proceedings against him as I am a creditor too. Might be cheaper to effect a transfer that way.


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## 44brendan (2 Nov 2015)

Sorrento said:


> It strikes me as very strange that irish law does not protect joint owners at all - while I can see that creditors should be paid on sale if there is equity.


Not quite correct. See previous postings! The JM's do not effect any share you have in the property. there are only effective against the interest of the joint owner. However you will need legal advice now as there is no effective way of transferring this property into your sole name nor of avoiding further JM's being registered against the property. Taking bankruptcy proceedings against a creditor is not a realistic option for you.


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## Sorrento (2 Nov 2015)

44brendan said:


> Not quite correct. See previous postings! The JM's do not effect any share you have in the property. there are only effective against the interest of the joint owner. However you will need legal advice now as there is no effective way of transferring this property into your sole name nor of avoiding further JM's being registered against the property. Taking bankruptcy proceedings against a creditor is not a realistic option for you.



thanks for the response - I am waiting for my solicitor to come back to me. I guess I find it strange that I could lose my home unless a 20% share could be sold off separately - I did pay huge stamp duty, maintenance etc etc and have stong ties to the community. I would also lose my tracker so would be unable to buy a similar house. 

In the UK judgement creditors can't force a sale of a jointly owned house, they get paid on voluntary sale only as far as I know.


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## 44brendan (3 Nov 2015)

I am reasonably sure that it is either impossible or next to impossible for a JM holder to proceed for a "well charging order" & "order for sale" over a jointly held property where only 1 party is liable for the debt. Even if it was possible it is unlikely that any JM holder would take such a case on nor would any judge be likely to grant possession in such circumstances. Your main difficulties are further up the line as you return the property to positive equity.


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## Sorrento (3 Nov 2015)

thank-you - if I could be sure that were the case I would be very relieved but my legal advice was that is very much a possibility. Are you making this assessment on the basis of negative equity or more generally and on basis of what evidence?



thanks again


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## cojo (20 Mar 2016)

Hi All
I have a potential judgment mortgage on the way, defending it, and wife has no hand act or part in it. she is very conserned that the family home, unencumbered can be force sale, any help greatly appreciated.

Ta all.


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## Jim Stafford (21 Mar 2016)

AureaEos said:


> Maybe the solution would be to transfer the unencumbered asset into your spouse's name only, then fight against the judgment mortgage. If you can hold out for three years ( I think ) against the judgment being registered against you, then the creditor cannot pursue the unencumbered asset, saying that you deliberately transferred the asset into your wife's name to put it behind the reach of them, maybe a solicitor or legal type might be able to assist you.



If you know you have  a judgment mortgage on the way you should consult a Personal Insolvency Practitioner with a view to doing a DSA or PIA.  Even if a JM is registered, it can be "lifted" provided your PIP obtains a Protective Certificate within 3 months.

Jim Staffird


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## cojo (27 Mar 2016)

Is their many banks not accepting the d.s.a. of p.i.a and can the creditor be encouraged by the courts to accept the d.s.a or p.i.a.

Thank you.
cojo


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