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QLD Bank Took Out Second Mortgage - Corruption?

Discussion in 'Debt and Bankruptcy Law Forum' started by ourlawisnotfair, 22 March 2015.

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  1. ourlawisnotfair

    ourlawisnotfair Well-Known Member

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    Can the bank take out a second mortgage over a home if there was already a second mortgage taken over the home when purchased by another person other than the home owner?
    If they can, what is the correct manner which it is done? Does home owner have right to be told? Shouldn't the home owner of needed to sign papers for this to happen?
     
  2. Ivy

    Ivy Well-Known Member

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    Hi there,

    To clarify your question:
    A has a mortgage over their house and remortgages (second mortgage)
    A sells to B.
    B takes out a mortgage to purchase the house.

    Is this your situation? If not, please clarify.

    Mortgagees (ie lenders) are listed on the Title. So if you've purchased a house you would have been able to see the lenders (egs bank/s) listed as mortgagee's.
    In addition, mortgages hold the mortgagor (house purchaser) to certain requirements, including requirements to notify and/or gain permission from the mortgagee before selling the property.
     
  3. Sophea

    Sophea Well-Known Member

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    A good place to start would be to read your mortgage document and see what your bank gives themselves the right to do with your mortgaged property.
     
  4. ourlawisnotfair

    ourlawisnotfair Well-Known Member

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    Thanks Ivy and Sophe, appreciate your responses.

    Ivy- to clarify...
    I the morgageee
     
  5. ourlawisnotfair

    ourlawisnotfair Well-Known Member

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    Ivy sorry pressed send accidently.
    I am mortgagee and my dad holds a second morgage over my property and he has held that second mortgage over my house for 10 of the 12 years Iv owned. I had some business trouble and subsequently the business collapsed, lost all money and me the director of the company still have a debt owing on the business loan. Now some 5 years later, the bank is telling me that I, as director of the company, have defaulted on those loans and due to those defaults the. I have defaulted on my personal mortgage loan. They require me to pay the 550,000.00 mortgage out in full or sell and have given me 28 days to do one of the two options.
    I have been paying the morgage over the past 3 years on interest only and never missed a payment in that regard. Can they do this, even somebody needing to refinance could not possibly do in a 28 day period. What are your thoughts?
     
  6. Ivy

    Ivy Well-Known Member

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    Thanks for your clarification. The bank (mortgagee) may be able to ask you (the mortgagor) to pay out your mortgage or sell your property if your property is security for your business loan. You need to go back through your business loan contract to see what you signed onto. Also have a good read of your mortgage documents.

    As far as the short time frame that you have been given, if the bank does have the right to force you to sell, then you may be able to negotiate the time frame in which you do that.
     
  7. ourlawisnotfair

    ourlawisnotfair Well-Known Member

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    Thanks Ivy, I'm going to look into those things and get back to you. I know that house is not security for business and that debt is substantially larger than the home is worth. They are def 2 seperate entities.
    I have archived away the policy and am relying on the bank to give me copies to reference. How trustworthy is the bank to give me th same signed documents as 11ish years ago?

    In regards to my corruption comment, do you know a firm anywhere in Australia that do litigation funding against extremely wealthy corrupt businesses that caused extreme life hardship due to withholding information that was detrnental to the fraudulent result of collapsed my business.
     

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