The Mortgage Act - calling all lawyers!!!

[The Cunning Linguist]

There are more twists and turns to the law in this area than you can possibly imagine... and the courts often act on the principle that "Once a mortgage, always a mortgage" to help out a mortgagor whenever the equity in the property is substantially greater than the amount (including legal fees and all expenses) due under the mortgage.

Perry

Yes, Perry, I'm beginning to find this out. All I really want is my bloody money. Knowing this guy the way I do, it's very likely he's already obtained financing, and the money is sitting in some short term deposit or t-bill for 30/45 days earning him some interest while I swing from a string.

As far as equity in the mortgage, he's just a shade under owing half of the purchase amount. You mention the courts "helping" out the mortgagor. Where's my help? I entered into a legal agreement, have had to chase/remind this guy for the monthly payments, and now he's making me wait for the final payment. If that money was in my pocket today, it could be earning ME interest in a short term deposit while I decide what to do with it long term.

In a perfect world, this prick should lose the property outright for failure to live up to his legal and financial obligations, and watch while I sell it for a big dollar. In reality, (and this depends on who you talk to), he may have done something which might lower it's value and potential use in the future. What recourse do I have then?

I guess my situation might be similar to someone who's sold a house, and then found out the new owners are running a grow-op.

The voices in my head are getting louder....time to clean your gun, time to clean your gun....

 

[Aardvark154]

he may have done something which might lower it's value and potential use in the future. What recourse do I have then?

Perry, Fuji et al, I don’t specifically know about Ontario but do you feel from what Cunning L says that he may possibly have a case for wastage against the Mortgagor? It does sound like it might be there if the action was taken deliberately to decrease the value.

 

[neverwas]

This is getting way beyond the initial simple fact situation. Perry is correct about all of the complexities that could arise. Neither Foreclosure or power of sale is simple. Both have a considerable number of possible problems. I won't even bother to start listing them.
Wastage constitutes default, just as other defaults, such as not paying, giving him the right to forclose or sell. An injuntction may be available to stop certain kinds of conduct.
C-L's concern about losing interest is not an issue as long as there is value in the property. His mortgage interest continues to run, so eventually he should get full recovery of principal, interest and costs.