Judgment against mortgage

Iluvtea

Is it possible for a judgement to be made against a person's mortage if they owe 2,000Euros (can not afford to pay the money and has been able to show this through copy of means of income) but the person who is owed the money has not tried to retrive the owed money? As in, no opportunity has been given to discuss repayment, just notice that they will be applying for a judgement against the mortage for the owed money.

The house is a family home and is in two people's name (a couple) and the money is only owed by one person who owns the house?

This hypothetical question is in relation to maintence that would have been paid but the amount had to be reduced due to change of financial situation.

dermot_sheehan

There is a means of payment called a judgment mortgage wherethe judgment is converted into a mortgage against property the debtor owns.

If its not repaid the creditor can apply to court to have the property sold to pay the debt.

Iluvtea

Thanks, but can that be done for the amount of 2k? Also the fact that it is family home (children) and two peoples names on the deeds? (As in the debt is only one of the persons). Is it possible for the judgement against a mortgage to be taken out without even consulting the debtor re repaying the maintence arrearrs?

Maximilian

I don't think the amount matters and no you don't need any kind of permission to register it as a mortgage.

the iceman come

gabhain7 wrote: »

There is a means of payment called a judgment mortgage wherethe judgment is converted into a mortgage against property the debtor owns.

If its not repaid the creditor can apply to court to have the property sold to pay the debt.

Technically correct but a well charging order is an expensive procedure and certainly wont be applied for a 2k debt.

dermot_sheehan

Costs of the well charging application (called an action for possession since this December) would be charged against the property as well.

PANADOL

the iceman come wrote: »

Technically correct but a well charging order is an expensive procedure and certainly wont be applied for a 2k debt.

Iam trying out a little experiment at the moment with a mortgage at the moment , have house rented out so am getting the money for the mortgage , however iam keeping it for myself as i have a farm down the country and need to do a few things just wondering how long or whats the limit on this, how far can you go before they pull you into the courts etc i think arears are between 4 to 6k

Tom Young

PANADOL wrote: »

Iam trying out a little experiment at the moment with a mortgage at the moment , have house rented out so am getting the money for the mortgage , however iam keeping it for myself as i have a farm down the country and need to do a few things just wondering how long or whats the limit on this, how far can you go before they pull you into the courts etc i think arears are between 4 to 6k

I wouldn't go there. The fact that you are even contemplating this is a problem.

In fact, this is why the country is in a mess. I know you weren't asking for a lecture, but if everyone decided to behave in this manner, we'd be even worse off.

I am not going to give you any indication as to the possible timing of the Court processes, but the summons procedure technically can be very quick.

Don't do it, and if you have, reconsider it very quickly.

Tom

Maximilian

As Tom said. If you are in arrears then you are in default of your loan agreement. That means they can pull the plug, demand repayment and then perhaps sell the property.

If you are not playing ball with the Bank, they are unlikely to play ball with you. You are taking a big risk in my view.

Curunina

I hope I am not straying over the line re giving legal advice here, but you should look into a case called Irwin v. Deasy.
Basically, that case established that a creditor cannot get an order for sale on registered land where there is a judgment mortgage registered against the interest of one of two/several owners. Now, the recent Conveyancing Act made some changes in this area, and Irwin v. Deasy is being heard on appeal (as a moot point, as the case itself has settled) by the Supreme Court in the relatively near future - but it is worth looking into, or - as this is fairly complicated - seeking legal advice on.
Best of luck!

FreudianSlippers

It was my understanding of Judgement Mortgages that they were quite difficult to get - somewhat of a last resort in collecting a debt.
If, truly, this is the first that OP has heard about this debt (and it's relatively tiny amount) then wouldn't it be quite odd for a JM to be granted?

Tom Young

OisinT wrote: »

It was my understanding of Judgement Mortgages that they were quite difficult to get - somewhat of a last resort in collecting a debt.
If, truly, this is the first that OP has heard about this debt (and it's relatively tiny amount) then wouldn't it be quite odd for a JM to be granted?

Not in the current climate buddy. I already said I wouldn't give a time estimate, but the banks are being very quick at the moment to secure themselves.

Tom Young

Curunina wrote: »

I hope I am not straying over the line re giving legal advice here, but you should look into a case called Irwin v. Deasy.
Basically, that case established that a creditor cannot get an order for sale on registered land where there is a judgment mortgage registered against the interest of one of two/several owners. Now, the recent Conveyancing Act made some changes in this area, and Irwin v. Deasy is being heard on appeal (as a moot point, as the case itself has settled) by the Supreme Court in the relatively near future - but it is worth looking into, or - as this is fairly complicated - seeking legal advice on.
Best of luck!

Thanks for this. There's a bit more to it that that. Which I am sure if the OP decides to head off and read, they will see the light!

Curunina

Hey - Tom, I was trying to give as simple a summary as possible of the principle established by the case, which does seem to be of particular relevance here, I hope you don't think I oversimplified?

Re Judgment Mortgages, they do not have do be "granted" - a lot depends on how the debt arises and if it is properly established. Was judgement granted against you (OP) in the District Court? If so, my understanding of the situation is that the creditor can just lodge an Affidavit, creating a JM. Of course, this is usually done by the Bank themselves, and/or by a solicitor, and we only come accross them when they are exhibited to an Affidavit grounding an application for well-charging relief, so I am not an expert by any means.

Our man in Havana

The first thing a bank will now do on obtaining a judgement is to slap a judgement mortgage on any property owned by the debtor.