Sep 19, 2021
THE NEW REALITY: PRIVATE MORTGAGE DEFAULTS - POWER OF SALE & FORECLOSURE - Part LVII of a Series – Mortgage Statements Part 3
In the previous Post LVI I continued a multi-part series unpacking mortgage statements and focused on mortgage statements for discharge purposes. This post will continue that examination, but now look at mortgage statements for information purposes and mortgage statements for redemption purposes.
Mortgage statements for information purposes are generally used when a person with an interest in the mortgaged property needs to know the status of an existing mortgage that is already registered on title to that property. The two most common asks are confirmation that the existing mortgage is in good standing (not in default) and what is the current balance owing under that mortgage. There are simply too many scenarios to list them all, but often include when a mortgage lender has been asked to put a 2nd or subordinate mortgage on title, or when an execution or other creditor wants to determine whether the mortgagor has equity (and if so how much equity) in the mortgage property.
Mortgage statements for redemption purposes are used when the owner/mortgagor wants to bring up to date an existing mortgage that is in default. Put another way, when an owner/mortgagor has defaulted under a mortgage and wishes to rectify the default and put the mortgage back into good standing, a mortgage statement for redemption purposes is requested. This statement will particularize the arrears owing under mortgage in question and spell out just how much has to be paid to the mortgagee to regularize the mortgage and cure the default.
Next blog will continue to unpack mortgage statements generally, and have a look at what happens when a mortgagee makes a mistake in a mortgage statement. As always, this blog is intended for information purposes only. It is not legal advice and cannot be relied on as such. Nor is it a substitute for hiring your own legal counsel, who will be an essential member of your mortgage default and power of sale team. And lastly, this blog is just my opinion. I reserve the right to change my mind. And I reserve the right to be wrong.
Be well and stay healthy.