Analyzing Borrowers And Lenders Rights Through A Scenario

1638 WordsFeb 12, 20177 Pages
In a mortgage, the borrowers have more beneficial rights rather than the lenders since mortgages are not made for lenders to gain properties. In this essay, will extensively analyse borrowers and lenders rights through a scenario. Firstly, it will be defined what is a mortgage and how it operates. Then, it will investigate that Rees has an inviolable right of redemption and any collateral advantage should stop. Secondly, it will recognise that Rees can postpone his right of redemption. Conversely, once Rees defaulted, Grantwill Bank can bring an action to the court. Moreover, the bank’s right of possession can be adjourned or suspended in a reasonable period, if Rees brings an evidence of a financial plan. Finally, Bank may sell the…show more content…
The mortgagor’ target is to redeem the mortgage in full and extinguish the mortgagee of any proprietary interest. Taking into consideration that the contract agreement of the mortgage was signed by both parties, the law imposed a legal contractual date of redemption. The legal date was forced to the mortgagor to pay off the amount owed, which is usually six months. If the mortgagor does not pay the instalments, the law cannot punish him because it should obviously be an abuse and unfairness for the borrowers. Any punishment should not be imposed because the equitable right to redeem exist. Equity has a protective role towards the mortgagor which allows him to extend the limit of the payment. To balance the interests of both parties for fairness, a mortgage should not be an opportunity for the mortgagee to gain mortgagor’s property. Therefore, Rees has the right to redeem the mortgage at any time after the legal date. The extension in the redemption of the mortgage was discovered the maxim ‘once a mortgage, always a mortgage’, which is valuable proprietary right. The equity of redemption represents the total sum of protection of the borrower’s rights in the land. Firstly, the terms of the mortgage cannot exclude the equitable right to redeem, otherwise, it will be a ‘clog’ or ‘fetter’ and it is void. The rights of Rees for redemption is inviolable. The right to redeem cannot be limited to certain people or a certain time.
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