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Hi I have two properties both with different lenders. If I have one property repossessed can the lender of the repossed property make a claim on the 2nd property even though it is with a different lender? The 1st property is in negative equity of about 25k. There is no way the property will ever make a profit due to defects. I cannot sell the property due to the defects plus my fist wife will not sign for me to sell Can you advise as everyone I have contacted cannot clarify this point. Can the 1st lender claim on the 2nd property? The 2nd property has a lot of equity!!

-- Alan Reid (alanreid@v21.co.uk), September 03, 2002

Answers

From what YOU owe to companies and third parties can be taken off your "assets". Basically, they can force you into "personal" liquidation and claim from what has been sold (Bankruptcy).

You will need to look at what liability you have first with the repossessed property. This is why people take limited liability with their private businesses.

The Lender is claiming off you and assets owned by you! Becareful what you disclose. If the property is co-owned with your wife, take a sneak peak at her "assets".

-- Geoff Winters (Geoff-winters@supadooper.com), September 03, 2002.


Thanks. If I take my name off the 2nd mortgage can they still touch it?

-- Alan Reid (alanreid@v21.me.uk), September 04, 2002.

That can be illegal, be careful what your doing and get professional advice. It's always best to start with the Citz Advice, they're free (and have a fantastic wealth of resources) and can sometimes give you access to a good solicitor.

-- Geoff Winters (Geoff-winters@supadooper.com), September 04, 2002.

I am not a business. I am just an average guy who just happens to have 2 mortgages

-- Alan Reid (alanreid@v21.me.uk), September 04, 2002.

Perhaps you have another alternative Alan? Why not re-mortgage your 2nd property (you know - the one with a lot of equity!) to release the finance necessary to put right the defects in the 1st property? That way perhaps you can avoid the whole sorry mess of repossession and shortfall claims. Repairing property 1 will then increase it's value won't it!

-- Gordon Bennet (arsenewhinger@hotmail.com), September 06, 2002.


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