MEMO on a property - priority payment

[pavlos03]

hello everyone.

Assume a person has a MEMO on a company's property based on a court's decision, but also a bank has a mortgage (first in order) for a higher amount also.

In case the bank moves to repossess / foreclosure the company and sell the property to the highest bidder, what happens in case of priority debt? assuming the selling price only covers the debt of the bank:

1. the person with the memo gets no money at all?
2. and if so, does he lose also the MEMO and the title deed is transfered free of debt to the new owner? or the MEMO remains for the new owner to deal with it?

Please advise.

thanks

[Nigel Howarth]

Hello pavlos03 and welcome to the forum.

Unless someone else here can give you a definitive answer, you will need legal advice on this matter.

However, one thing I can say for sure is that any new owner would not be liable for the debt (memo).

If the company goes into liquidation, the secured creditors (i.e. the government, the bank, the memo) have priority. If the disposal of the assets is less than the total debt, it's unlikely that the person/company with the memo will receive anything.

Regards,