Optimize Debt Recovery During Mortgage Enforcement with a Cr...
Property owners don’t often default on mortgages, but when they do, you need to know which method of recovery will offer the greatest return.
There are four common remedies that are used if a mortgage goes into default.
A power of sale (POS) is the most common remedy when enforcing a mortgage. A POS often exists within the mortgage contract and allows the lender to sell the property and use the proceeds to pay any arrears.
When a POS is the chosen remedy, the mortgagor remains on the land title until the property is sold, any losses incurred from the sale are at the owner’s expense and if there is any extra money, after creditors have been paid, the owner is entitled to it.
If there is a deficiency, the mortgagee must collect from the mortgagor.
