Mortgages Flashcards
1
Q
When can lender exercise power of sale?
A
Power of sale must have:
- Exists (implied or express)
- Arisen (money due or 1 month into mortgage term)
- Exercisable (given notice for 3 months rent due or interest os 2 months due or breached mortgage term)
2
Q
Options for lender to enforce against defaulting borrower?
A
- Possession
- Power of sale*
- Debt Action
- Appoint receiver
- Foreclosure*
3
Q
What happens for lender to possess property?
A
- oust borrower or
- lease to someone else and get income from them
4
Q
Condition for lender to possess property?
A
Without violence
5
Q
How can borrower rebut possession?
A
s36: adjourn or delay proceedings
6
Q
Conditions for borrower to rebut possesion proceedings?
A
- proceedings started
- dwelling property
- evidence to repay arrears + pay monthly installements for next 20 years
7
Q
What is equity of redemption?
A
- Buyer can repossess property if repay debt
8
Q
Lender duties when selling property?
A
- act in good faith
- obtain true market value of property
9
Q
Effect of selling property regarding mortgage priority?
A
- Any previous mortgage is disregarded
- mortgages of greater priority are still valid
10
Q
Mortgages are ranked in order of…
A
Registration
11
Q
Fixed Charges are ranked in order of…
A
Creation
12
Q
Condition for debt action?
A
- legal date of redemption passed
6 years - interest
12 years - capital
13
Q
Conditions for appointment of reciever?
A
- redemption date passed
14
Q
What does reciever do?
A
- Redirect income/outgoings from property to go to lender
15
Q
Process of foreclosure
A
*RARE = long process
- court gathers accounts of what is due (foreclosure nisi)
- title passes to lender (foreclsoure absolute)
