Mortgage liability

curious9401

Hi my friend finds themselves in a strange situation. They have a mortgage with one of the major banks that could be in slightly negative equity. Here's the thing the property has 2 folio numbers one for the house and most of the garden and another for septic tank as it was outside the original boundary and had to be bought separately. It has just come to light that when the mortgage was drawn up in 2006 only the septic tank was included as security leaving the house and garden with no charge on it and not included in the security. The mortgage is currently in arrears now as it stands the bank can only force a sale of the septic tank but obviously there would be a fair shortfall even if they could sell a septic tank! Now here's my question could it be the solicitors that are liable for the shortfall as it was their negligence that caused the major shortfall in the security? The solicitors would obviously be insured against this so would be a much better bet than my friend who is struggling financially. Any opinions please?

ted1

Sounds like your friends may be morally bankrupt.

curious9401

ted1 wrote: »

Sounds like your friends may be morally bankrupt.

Very helpful Ted especially when you know nothing of the situation. Hows the view on that high horse?

seamus

He should engage a different solicitor to look at all the documentation.

There's more at play here than just the bank owning his septic tank. If the main property is in his name there could be tax implications from the improper filing, and the bank will still have a right to pursue him for the debt beyond the septic tank.

The solicitor's insurance would probably cover the cost of undoing the documentation mess and ensuring that the mortgage is properly registered against the main property. They wouldn't be liable for the mortgage.

But he needs another solicitor to work through this.

The_Morrigan

OP the only advice anyone here can give you is to engage the services of another independent solr.