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Multiple Approaches by Creditors to Recoup Debt

If you owe or have liens against your property that is far above the equity in your home, can a creditor sell your home to recover his debt that he cannot realise from the sale?

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One Response to “Multiple Approaches by Creditors to Recoup Debt”

A licensed trustee said...

I am sorry, but I am having some difficulty understanding your question.

Any creditor that has a properly registered lien or charge on your property may exercise their right to seize and sell the property. That is the basic principle underlying “secured” debts.

Of course, that right ranks in priority based on when the lien is registered. For a second mortgage to seize and sell your property they need to either payout your first mortgage or at the very least undertake to do so. A third mortgage would have to pay out both the first and the second.

If as you say, you have accumulated more debt against your house than it is worth then it is not likely that anyone other than the first mortgage company would force a sale.

Creditors that do not have registered liens are not able to force a sale of your house.

I hope this is of some assistance. If it is not then I suggest you contact someone in your area to discuss your questions over the phone.