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Clearing a judgement mortgage on a property

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  • 25-02-2021 6:03pm
    #1
    Lottie125
    Registered Users Posts: 10 ✭


    Wondering if anyone has been in a similar situation. There is a court ordered judgement against my property, if i engage with the bank who the debt is owed to are they likely to accept a discounted lump sum now, instead of leaving the judgement lapse (judgement is is 10 years old). Has anyone had any experience of being able to pay say 50% of amount owed.


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    #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,644 Mod ✭✭✭✭Henry Ford III


    Nobody here can say how a bank might react to an offer to clear a debt.

    My only suggestion is to contact them and see what sort of reaction you get.


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    #3
    FromADistance
    Registered Users Posts: 310 ✭✭FromADistance


    Lottie125 wrote: »
    Wondering if anyone has been in a similar situation. There is a court ordered judgement against my property, if i engage with the bank who the debt is owed to are they likely to accept a discounted lump sum now, instead of leaving the judgement lapse (judgement is is 10 years old). Has anyone had any experience of being able to pay say 50% of amount owed.

    The judgement will lapse after year 12... is the Bank still in touch with you or is there another reason why you're thinking about addressing this now? What's the debt owed vs the value of the property?


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    #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,045 Mod ✭✭✭✭Jim2007


    Lottie125 wrote: »
    Wondering if anyone has been in a similar situation. There is a court ordered judgement against my property, if i engage with the bank who the debt is owed to are they likely to accept a discounted lump sum now, instead of leaving the judgement lapse (judgement is is 10 years old). Has anyone had any experience of being able to pay say 50% of amount owed.

    It really comes down to what’s in it for the bank? If you need to move then they know the debt will have to be settled as a matter of course, so why should they give a discount?

    And if you are not moving why settle the debt...


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    #5
    Lottie125
    Registered Users Posts: 10 ✭Lottie125


    FromADistance wrote: »
    The judgement will lapse after year 12... is the Bank still in touch with you or is there another reason why you're thinking about addressing this now? What's the debt owed vs the value of the property?

    Has been no contact with the bank at all in the past 10 years, so likely it will go after another 2 years, problem is there is a lifetime mortgage also on the property which increases by €11k every year so if we wait another 2 years we will have to pay around an extra €22k to buy back the property from the mortgage side (an absolute mess i know) the judgement is €10k so was wondering if it was common practice for them to accept a discounted amount, ideal situation would be pay them €5k and then buy out the lifetime mortgage now, which is already over €200k😭. Problem is by engaging with the judgement debt now we are acknowledging it after 10 yrs. Its my nans debt and house which we are trying to buy back.


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    #6
    Lottie125
    Registered Users Posts: 10 ✭Lottie125


    Jim2007 wrote: »
    It really comes down to what’s in it for the bank? If you need to move then they know the debt will have to be settled as a matter of course, so why should they give a discount?

    And if you are not moving why settle the debt...

    Thanks for your reply, please see message above, explains situation more. Its my nans house that she put a lifetime mortgage on, which increases at a high interest rate every year. So im trying to pay that off (sooner rather than later as the amount increases by around €11k per yr) and buy back the house and then we found out about this extra debt attached to the house (€10k judgement). But yes definitely wouldn't be telling the people the debt is owed too that i am trying to buy it as obv they will want the full amount then. Just looking for advice for best way to approach as she hasn't engaged with them since the debt was attached 10 yrs ago so need to go about it the best way.


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    #7
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,045 Mod ✭✭✭✭Jim2007


    Lottie125 wrote: »
    Thanks for your reply, please see message above, explains situation more. Its my nans house that she put a lifetime mortgage on, which increases at a high interest rate every year. So im trying to pay that off (sooner rather than later as the amount increases by around €11k per yr) and buy back the house and then we found out about this extra debt attached to the house (€10k judgement). But yes definitely wouldn't be telling the people the debt is owed too that i am trying to buy it as obv they will want the full amount then. Just looking for advice for best way to approach as she hasn't engaged with them since the debt was attached 10 yrs ago so need to go about it the best way.

    Put yourself in their shoes, you have made no contact or attempt to settle the debt up to now and suddenly with two years to go your are making an attempt to settler it. Obvious you have some motivation to do so, so why offer you a discount?


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