Topic 29

Question 1

Gee and Sam are about to have their house taken into possession by their lender.

Under the MCOB rules, which of the following statements is true?

a. The lender must market the property for sale within three months.

b. The lender must obtain the best price reasonably obtainable for the property, taking into account current market conditions.

c. The lender will be able to claim back from Gee and Sam any amount paid from a mortgage indemnity guarantee policy.

d. Where the sale proceeds exceed the outstanding debt, the lender can keep the surplus.

Answer 1

b. The lender must obtain the best price reasonably obtainable for the property, taking into account current market conditions.

Question 2

Anabelle’s property has recently been taken into possession by her mortgage lender.

What are the implications for Anabelle?

a. Anabelle can stop the lender selling the property by clearing the outstanding arrears.

b. Anabelle can reclaim her property by redeeming her outstanding mortgage account in full before the property is sold.

c. On sale, any difference between the original purchase price and the sale price must always be passed immediately to Anabelle.

d. The lender must delay the sale of the property until the sale price covers Anabelle’s original loan.

Answer 2

b. Anabelle can reclaim her property by redeeming her outstanding mortgage account in full before the property is sold.

Question 3

Which of the following is not an option available to the court when considering an application for possession?

To:

adjourn the case.

grant a suspended possession order.

grant an outright possession order.

order the borrower to repay the full debt within a specified period.

Answer 3

order the borrower to repay the full debt within a specified period.