The document discusses the legal balance between mortgage obligations and the protections afforded to mortgagors, emphasizing the importance of safeguarding the equity of redemption. It outlines various statutory obligations and rights related to mortgages, including the mortgagee's powers and the mortgagor's protections against foreclosure and other remedies. The text underscores the necessity for a comprehensive understanding of consumer credit law and the nuances of the legal framework surrounding mortgages.

1. Mortgages: protections and
remedies

2. The law searches for balance
And there is great reason and
justice in this rule [against clogging the
equity of redemption], for necessitous
men* are not, truly speaking, free men,
but, to answer a present exigency, will
submit to any terms that the crafty may
impose on them.
Vernon v Bethell [1762] EngR 18
*I imagine also women

3. PLA
LTA
Contract
Consumer
credit law

4. Locating statutory obligations,
rights: recall
PURPOSE
CONTEXT
TEXT

5. Narrowing down the statutory
context and text
Focus on
mortgages
Narrow focus
on rights
create Rights
propy
lease
mtg
e
land
Rights
Act overall

6. Narrowing down statutory
context and text - mortgages
Version,
commence-
ment
Purpose,
objects
Structure
Geographical
extent
Persons and
things
covered
✔
✔
Search for
provisions
specific to
mtges
Check
particular
elements of
application
re mtges
✔

7. Use the Acts’ table of contents
PLA LTA Consumer Credit
Act
Repayment
Protecting the
property
(Holding CT)
Insurance
Default
Exercising
powers on
default

8. Locate relevant provisions
Mortgagor’s
obligations
Mortgagor’s rights Provisions
Repay principal +
interest
Redeem property
Preserve the
mortgaged property
Refinance
Seek consent to lease Proper notice;
proper conduct of the
sale
Last chance to repay;
right to request sale as
alternative to
foreclosure

9. How are rights balanced on
default?
Right Source of right Protection
To sue on personal
covenant
To enter into
possession
To appoint a receiver
Power of sale
Foreclosure

10. Prerequisite for sale – look at the
Act
Step 1 Step 2 Step 3

11. What if…
Failed to
advertise
Sold to
related entity
Sold below
market value

12. Can the mortgagee recover
under multiple remedies?

13. Overview
Conscience, power at heart of transaction
The law protects the mortgagor
Sources of protection
Multiple statutes, common law must be read
together
Remedies
Mortgagor protections extend to exercise of
remedies