Mrs. Hamilton borrowed Sh. 5 million from White Bank and offered her house at White Highlands Estate as a security. She has been unable to...

      

Mrs. Hamilton borrowed Sh. 5 million from White Bank and offered her house at White Highlands Estate as a security. She has been unable to service the loan and is in arrears. The bank intends to realize the security and seeks your legal advice on what options they can take to realize the security.

Advise White bank.

  

Answers


Raphael
- This problem is based on the remedies of the mortgagee or chargee in property law. In this case White Bank as the Mortgagee or Chargee has several remedies in its favour.

- Statutory Power of Sale: the bank is entitled to sell Mrs. Hamiltons house to recover the amount due. This may be the most effective remedy.

- Suit on Personal Covenant: this is the right of the bank to sue Mrs. Hamilton for the amount due under the contract. This action leaves the security intact.

- Fore Closure: this is a court order which would bar Mrs. Hamilton from redeeming her security.
raphael answered the question on April 17, 2018 at 18:19


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