I have a charge over a property owned by a bankrupt. The mortgage holder is looking to repossess the property so that their charge is repaid, but what can I do to protect my position and prevent a sale at a low price that results in my charge not being repaid in full.
Not much I’m afraid. The mortgage holder holds the first charge and reserves the right to do as they see fit. It is often the case that 2nd and 3rd charge holders lose out, as there are solicitors / estate agents fees on top of the amount of the first charge amount. You mentioned that your charge is higher than the mortgage amount. It doesn’t make a scrap of difference – a £25k mortgage will have swelled to £35k by the time the fees are added.
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