Legal Mortgages And Consolidation

Question 1

What is a mortgage ?

Answer 1

Interest over land granted as security for a loan.

Question 2

What must be true for power of sale to apply ?

Answer 2

It must exist, have arisen, and and become exercisable

Question 3

What does it mean for power of sale to exist ?

Answer 3

Expressly states within mortgage deed

Question 4

What does it mean for power of sale to have arisen?

Answer 4

Mortgage money must be due, and any instalment under a mortgage must be due

Question 5

What does it mean for power of sale to become exercisable ?

Answer 5

• Lender has given borrower notice to repay the loan and has not paid for 3 months after
• interest in arrears for two months after being due
• borrower breached a term of the mortgage

Question 6

What remedies are available to a lender with regards to legal mortgage ?

Answer 6

• Possession
• Power of sale
• debt action
• appointing a receiver
• foreclosure