What are the rights of a mortgagee?
A mortgagee can take possession of mortgaged property in case of default. Under the Transfer of Property Act, if there is default in payment of mortgage money, the mortgagee can take possession of mortgaged property and sell it without intervention of a Court only in case of English mortgage.
What are the rights and duties of mortgagee?
Following are the duties of a mortgagor:
- Duty to avoid waste.
- Duty to indemnify for defective title.
- Duty to compensate mortgagee.
- Duty to direct rent of a lease to mortgagee.
Can mortgagee sell to itself?
No, unless an exception applies. The courts have held that a mortgagee exercising a power of sale cannot sell to themselves as it is deemed a ‘logical impossibility’. Nor can a mortgagee sell to an officer, solicitor or agent acting for the mortgagee. However, the sale must be a truly independent bargain.
What does the mortgage allow the mortgagee?
A mortgagee is an entity that lends money to a borrower (also known as a mortgagor) for the purpose of purchasing real estate. In order to limit its risk, a mortgagee creates a priority legal interest in the value of the mortgaged property, allowing it to seize it if the mortgagor defaults on the loan.
Is the mortgagee the borrower?
The mortgagor is often referred to as the borrower. A mortgagee is an entity that lends the mortgagor money. This entity is typically referred to as the lender.
Can a mortgagee be a person?
A mortgagor is the person or other entity that receives a mortgage loan in order to buy property. Before obtaining a loan, a mortgagor must complete an application and be approved by the lender’s underwriters.
What happens if a mortgagor defaults?
If the mortgagor defaults, the mortgagee can foreclose, meaning the mortgagee can sell the mortgaged property and keep as much of the proceeds as needed to pay off the mortgagor’s debt. The mortgagee may initiate a judicial action to have a public official sell the property at auction.
Does an equitable mortgagee have a power of sale?
The mortgage was made by deed, and was originally intended to be a legal mortgage. And the case of Swift 1st Ltd v Colin [2011] (which is, I believe, still good law), held that an equitable mortgagee does have a power of sale.
Is a bank a mortgagee or mortgagor?
The mortgagee is basically the bank that gave you a mortgage, and you are the mortgagor. Technically, the bank or lending institution is the legal owner of your home until you pay off your loan. The mortgagee can seize your home in the event you default.
Who holds the legal title in a mortgage?
Under the title theory title to the security interest rests with the mortgagee. Most states, however, follow the lien theory under which the legal title remains with the mortgagor unless there is foreclosure.
Is the mortgagor the owner?
The mortgagor is also referred to as the borrower or homeowner in some documentation. Terms such as “buyer,” “owner” and “borrower” may be used interchangeably at times during the mortgage loan process. A mortgagor can also refer to a business, individual or partners seeking a loan to buy a commercial building.
What is the first mortgagee?
First Mortgagee means the holder of any First Mortgage. First Mortgagee means the holder of the First Mortgage.
What are the rights of the mortgagor in Ontario?
Section 2 (2) of the Mortgages Act (Ontario) states that the right of the mortgagor to require an assignment belongs to and is capable of being enforced by each encumbrancer or by the mortgagor, notwithstanding any intermediate encumbrance.
What are the remedies for mortgage default in Ontario?
Mortgagee Remedies in Ontario. When a mortgagor (borrower) defaults on mortgage payments, the mortgagee (lender) has several remedies at its disposal. The most frequently used remedies are a power of sale, an action for judicial sale, and an action for foreclosure.
What is the right of mortgagor in a mortgage?
The fundamental term that equity has incorporated into a mortgage is the right of the borrower/mortgagor to “redeem” the mortgage – in other words, to pay off the mortgage debt in exchange for the return of the security after enforcement proceedings have been commenced and there has been a legal or technical forfeiture under the mortgage.
When does a bank need to enforce a mortgage?
The need for mortgage enforcement arises where the borrower (i.e. mortgagor- usually a homeowner, or owner of office, retail, other business space) is unable to make their mortgage payments, and therefore fails to comply with the agreed-upon terms in the mortgage contract with the lender (i.e. the mortgagee- generally a bank or private lender).
