However, if the bank has a right of hypothec, the proceeds of the house will first be used to pay the bank. If the house brings in 80,000 euro the bank will receive all that money and Joan’s friend will receive nothing. If the house brings in 140,000 euro the bank will receive 100,000 euro and the friend 40,000 euro. (This example assumes that there are no other creditors and that Joan has no money, but only the house).
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