Economics 3366A/B Quiz: Rights and Remedies of the Mortgage
22 Sep 2020
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Must balance protections for mortgagors and mortgagees. Mortgage debt cannot be written off like other debts. There is not security to other loans, like mortgages. Remedies differ if mortgagor defaults on legal mortgage vs. equitable mortgage. Right of foreclosure done with little notice, take away right of mortgagor. It"s not a remedy used very often in england. Gave mortgagee quick relief and can get ownership of legal title/get their money very quickly. Effect of foreclosure- extinguishes the equity of redemption. The mortgagee can take over entire ownership of the property irrespective of the size of the debt. Foreclosure actions are almost unheard of in england nowadays. Right of possession raise some money to prevent the mortgagor from eviction notice, period for mortgagor to sort themselves out. Used for no other reason than default on the mortgage. Possession order is before the right of sale. Mortgagor has to vacate property before it is put on the market.
