Mortgages Flashcards
What is a mortgage?
interest in the borrower’s land
What is a mortgagor?
the borrower, the property owner
What is the mortgagee?
the lending institution, bank etc
What is redemption?
bringing the mortgage to an end
What is the loan to value ratio?
the percentage lent by the lender
What are mortgagee’s remedies?
personal remedy of suing on the covenant to repay, foreclosure, appointing a receiver possession, sale
What is personal remedy of suing on the covenant to repay?
contractual term of every mortgage that the mortgagor will repay the money owed on the legal date of redemption
What is foreclosure?
transfers all legal and equitable rights in the property to the mortgagee, by an order of the court
What is appointing a reciever?
to manage and administer the mortgaged property and possible to sell
What is possession?
usually exercised in conjunction with the power of sale
What is duty of good faith?
subjective test, mortgagee should not act wilfully and recklessly. it covers fraud, corruption and collusion with the purchaser
What is duty of reasonable care?
objective test, mortgagee should not act carelessly or imprudently in the sale
