Mortgage enforcement may arise from:

• Missed principal or interest payments;

• Failure to repay the mortgage at maturity;

• Unpaid property taxes or condominium expenses;

• Failure to maintain required insurance;

• Unauthorized transfers, refinancing, or further encumbrances;

• Material misrepresentations made in obtaining the loan;

• Waste, deterioration, or abandonment of the property; and

• Insolvency, bankruptcy, receivership, or competing enforcement proceedings.

Depending on the mortgage terms and surrounding circumstances, a lender may pursue:

• A demand for payment and notice of default;

• Power of sale proceedings;

• An action on the covenant to pay;

• Possession of the mortgaged property;

• Foreclosure proceedings;

• Appointment of a receiver or receiver-manager;

• An injunction or preservation order where the property is at risk;

• Recovery against guarantors; and

• A claim for any deficiency remaining after the property is sold.

Power of sale permits a mortgagee to sell the property after the required default and notice periods have expired. The proceeds are applied in accordance with applicable priorities, and any surplus must be accounted for. Foreclosure is a separate court-supervised remedy through which the mortgagor’s equity of redemption may be extinguished. The correct remedy depends on the value and condition of the property, the amount owing, title priority, occupancy, and the presence of other creditors.

We will generally request:

• The registered mortgage and charge terms;

• The loan agreement, commitment, and amendments;

• Guarantees and indemnities;

• A current payout statement and payment history;

• Default and demand correspondence;

• A parcel register and relevant registrations;

• Appraisals, tax records, insurance information, and inspection reports; and

• Information concerning occupants, tenants, other lenders, or insolvency proceedings.