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Land Law – Mortgage - Foreclosure
This remedy is rarely used, and the Law Commission has recommended that it be eliminated entirely. The outcome of this remedy is to totally eliminate the mortgagor's equity of redemption. The entire property then vests in the mortgagee, who may subsequently register as the property's registered proprietor if the debt is not settled in full by a specific date. Courts are very unlikely to grant foreclosure in situations when the value of the property exceeds the mortgage debt because the mortgagee is not required to pay the mortgagor any extra value in the property over the amount of the mortgage. It should be mentioned that this clause exclusively covers foreclosure.
Despite this, most mortgagees find it to be a pretty unappealing remedy, particularly in situations where there is negative equity because it eliminates their ability to sue for any deficiency on the mortgage.
This remedy is rarely used, and the Law Commission has recommended that it be eliminated entirely. The outcome of this remedy is to totally eliminate the mortgagor's equity of redemption. The entire property then vests in the mortgagee, who may subsequently register as the property's registered proprietor if the debt is not settled in full by a specific date. Courts are very unlikely to grant foreclosure in situations when the value of the property exceeds the mortgage debt because the mortgagee is not required to pay the mortgagor any extra value in the property over the amount of the mortgage. It should be mentioned that this clause exclusively covers foreclosure.
Despite this, most mortgagees find it to be a pretty unappealing remedy, particularly in situations where there is negative equity because it eliminates their ability to sue for any deficiency on the mortgage.
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