Mortgage shortfalls
Mortgage shortfalls exist when a client’s home has been repossessed and sold but it does not make enough money to clear the debt. The lender is entitled to pursue the debt as an unsecured debt once court action has been taken. More information can be found in MCOB 12.4.
1As this is now a non-priority debt, it can be dealt with the same as other debts that the client may have, and a relative strategy is chosen for them.