Who is Everhome Mortgage Owned By

Mortgage: how to take out a mortgage & more information

5. What happens in the event of insolvency?

It comes to one several months in arrears of the borrower, then the lender (i.e. the bank) may initiate the foreclosure auction. However - in contrast to the land charge - the lender must prove the existence of the associated loan debt. Another possibility is that Foreclosure: Then the net rental income from the property is used to settle the claim.

This is also where the Registration priority the mortgage plays a role in the land register: a mortgage that was entered in the first rank (so-called 1a mortgage or first-rate mortgage) is also the first to receive back the outstanding claims from the proceeds of the forced sale. All mortgage liens registered afterwards ("subordinate") receive the remaining proceeds then still available. This means that it may not be possible to repay all claims in full.

Only when the claims to which the mortgage relates have been completely paid off by the owner does the owner have the opportunity to apply for a cancellation permit. The mortgage is only deleted from the land register when the bank, as the mortgagee, confirms that the claims have actually been repaid.