Question

explain how redemption and foreclosure are nearly legal opposites as applied to ones rights and liabilities under a mortage?

Answer 1

Ans : The rights and liabilities of a mortgager arise when the buyer secues a loan from the lender on the basis of security, only then the loan becomes secured loan. The Transfer of Property Act, 1882 describes the various rights of mortgagor. Under Section 60 of Act, The right to Redemption is given.

This right puts an end to the mortgage by returning the property of mortagagor. It grants mortgagor the right to (i) end the mortgage deal (ii) transfer the mortgaged property to his name.

The right allows the individuals who have defaulted on their mortgages the ability to reclaim their property by paying the due loan amount; interest as well as the principal.This right gives the mortgagors the opportunity to reclaim their property and stop a foreclosure to happen and in some cases even repurchase their property after a sale has happened.

Right to Foreclosure

This right given under the section 67 of Transfer of Property Act allows the mortgagee to recover his/her outstanding money. After the principal amount has become due and before the payment of mortgage money by the mortgagor, mortgagee has right to obtain decree of foreclosure from the court. This right can be exercised only if (i) the debt amount has become due for payment. (ii) There is no time fixed for repayment in the contract. (iii) Mortgagor has not obtained a decree of redemption of maortgaged property.(iv) Mortgage amount has become due but the mortgagor has not deposited the amount.

Right to redemption gives the mortgagor the protection from undue nature of mortgagees, it helps the mortgagors to stay in the property wheras the right to foreclosure protects the mortgagees in case of default by mortgagors, and to collect the due amount by selling the property. Both are opposite of each other as protect the mortgagors and mortgagee respectively. If the mortgagor fails to obtain the right to redemption, the mortgagee dose not become the owner of the property, he has to file a suit of the recovery due. In this sense these both are opposite one is right of mortagor and other is the right of mortagagee, one can't be exercised if other one is ibatined by the opposite person or party.