Judgment mortgage where primary mortgage is up to date

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boltownes

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I hope it is ok to post this as a new thread:
Grateful for any answers to this scenario: Paddy has a property (not his primary residence) which he is renting out and on which his bank mortgage is up to date. The house is in positive equity of about €20,000. If Paddy has a judgment mortgage registered against the property by a creditor, can the creditor force sale of the house, given the bank has the primary mortgage on the house.

Just to clarify, there is no problem with the bank mortgage. It is up to date. The problem is with a non-bank creditor who has registered a judgment mortgage for €50,000 on the property. So can the creditor force a sale to recoup €20,000 (the positive equity) of what he is owed? Thanks again.
 
Again no. As there is not enough equity to clear all charges a judge would not grant an order to force a sale. The JM will simply sit there for 12 years in the hope that someday the value will clear both charges.
 
There is not enough equity now but what if in 3 years time, the mortgage payments decreased the loan balance and thus
have increased the equity and the outstanding charges against the property could be met if the house was sold?
 
50k is well worth waiting for some people.
Perhaps Paddy should watch his back in the years to come.
 
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