How Potent is the Mortgagee’s Power of Sale?

Abstract

A mortgagee has certain remedies for securing the repayment of his loan. They consist of an action on the covenant for repayment of loan, foreclosure, taking up possession, appointment of a receiver and a sale of the mortgaged property. A mortgage deed usually contains a covenant for the repayment of the loan for which the mortgagor is personally liable and upon which the mortgagee can sue on or after the contractual date for redemption. The mortgagee’s power of sale is the most potent of all his remedies as he realizes his security without much effort.  This paper centers its discussion on realty and examines the statutory provision relating to the exercise of the power of sale and the attitude of the courts to ensure compliance.