Shortfall debt
The remaining debt after the proceeds from selling secured property or assets are insufficient to repay the lender in full.
Related terms
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Mortgage shortfall
The amount still owed to a mortgage lender after a property has been sold and the sale proceeds are not enough to clear the secured debt and related costs.
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Property debt
Debt connected with property, including mortgages, bridging finance, secured loans, development finance, rent arrears or property shortfalls.
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Second charge
Security registered behind a first charge over the same asset, meaning the second-charge lender is normally paid after the first-charge lender from sale proceeds.
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