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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34589
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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My home was repossessed via court order by the mortgage lender

Customer Question

My home was repossessed via court order by the mortgage lender and I have now vacated it. I also had a loan which was secured against the house (a second mortgage) with a different lender, which I could not repay. This lender also secured a court order to repossess. How is the debt to each creditor repaid? Does the main mortgage lender (debt £112k) have a duty to the second lender(debt £30k) to compenste them when the house is sold? How does it work? Having also been granted possession by the court, surely the second lender can no longer pursue me for the debt?
Submitted: 3 years ago.
Category: Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question.
My name is ***** ***** I will do my best to help you
The process is straight forward but I am afraid is bad news
The First lender has to see the house for the best price achievable.
From the proceeds they deduct the outstanding mortgage and their costs.
If there is any balance then that is passed to the Second lender.
I am afraid that if there is a shortfall for either lender then you are still liable and they can pursue you for the outstanding debt
I am sorry - do please ask if you need further details
Clare
Customer: replied 3 years ago.

Thank you, ***** ***** may be straight forward, but I couldn't get a straight answer from anyone else.

Expert:  Clare replied 3 years ago.
Hi
Glad to have helped - and to be honest the Mortgage Company should have given you the information
Clare