Taking Possession: Mortgagee’s Beware
When a borrower persistently defaults on a mortgage, the response of the mortgagee lender in almost every situation is to take possession of the mortgaged property with a view to realising its security. This is hardly surprising. Very few defaulting borrowers will have any other assets against which the lender can enforce the personal covenants in the mortgage and a sale of the mortgaged property is normally the only way in which a lender will recoup all or any of its advance. Obtaining possession is normally a practical requisite of effecting a sale, although the two steps are distinct and flow from separate rights in law.
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