Mortgage foreclosure

“ I think there's a lot of people, millions of people, in this country, that have played by the rules, like that person said, but through no fault of their own find that the mortgage that they currently have exceeds the value of their home. That may well be because somebody else on their street had a foreclosure. ”

“ As a general rule, a prior mortgagee is not a necessary party to a bill to foreclose a junior mortgage, where the decree sought is only for a foreclosure of the equity of redemption from the prior mortgage, and not of the entire property or estate. ”

“ In general.— It is the sense of the Congress that mortgage holders, institutions, and mortgage servicers should not initiate a foreclosure proceeding or a foreclosure sale on any homeowner until the foreclosure mitigation provisions, like the Hope for Homeowners program, as required under title II, and the President’s ``Homeowner Affordability and Stability Plan ́ ́ have been implemented and determined to be operational by the Secretary of Housing and Urban Development and the Secretary of the Treasury. ”

“ The plain meaning of the proviso is to permit any foreclosure of the mortgage to operate only upon such lands as are opposite and appurtenant to that part of the road which should be constructed at the time of the foreclosure, but not to extend for a day the time within which the road should be completed. The act also had a purpose in its assurance to mortgagees that no forfeiture would be insisted upon for conditions already broken, and that they might safely advance their money, if no breach should thereafter occur. ”

“ Rose repeated willingly.
“When you get your money for the stock put it into mortgages—first mortgages, not seconds. Let that be a principle with you. Many a holder of a second mortgage has been left to hold the sack. You must remember that the first mortgage comes in for the first claim after taxes, and if the foreclosure doesn't bring enough to satisfy more than that, the second mortgage is sleeping on its rights.” ”

“ Where the mortgagee brings his bill of foreclosure, the mortgage will, after the same length of time, be presumed to have been discharged unless there be circumstances to repel the presumption, as payment of interest, a promise to pay, an acknowledgment by the mortgagor that the mortgage is still existing, and the like. Ib.
In every point of view in which the case may be considered, it is clear that there is no ground of equity, on which the complainants can have relief. ”

“ A mortgagor has the right to redeem the property at any time within the statute of limitations, after the mortgage debt becomes due. The mortgagee does not have to wait the pleasure of the mortgagor to redeem or abandon the right. Equity gives the mortgagee the right to cut off the mortgagor's equity of redemption by foreclosure. By foreclosure is meant the mortgagee's right to file a petition in a court of equity asking that the property be sold, and that from the proceeds, the amount of the mortgage debt and costs first be paid, and that the balance be paid the mortgagor. ”

“ A HUD-approved counseling intermediary shall meet certain mortgage foreclosure mitigation assistance counseling requirements, as determined by the NRC, and shall be approved by HUD or the NRC as meeting these requirements. (2) Mortgage foreclosure mitigation assistance shall only be made available to homeowners of owner-occupied homes with mortgages in default or in danger of default. ”

“ Indeed, even for people who get into trouble and get behind in their mortgages, we have found that we have been able to keep half of them in their homes and not go to foreclosure by working with them as they work through periods of unemployment or sickness or divorce or other issues. ”

“ The right to have a decree of foreclosure and sale is an absolute right on the part of the mortgagee, flowing from a breach of the conditions in the mortgage. But the appointment of a receiver is a matter resting largely in the discretion of the court,-not of course, an arbitrary, but a legal, discretion,-and depending, not simply upon the breach of condition in the mortgage, but also upon the question of relative injury and benefit to the parties and the public by the taking of the property out of the possession of the mortgagor, and placing it in the hands of a receiver. ”

“ By Michigan law, it is said, the mortgagor is allowed one year from the date of the foreclosure sale within which he may redeem the property by paying to the purchaser the amount bid for the property plus interest from the time of the sale at the rate borne by the mortgage, even though the amount of such bid be less than the total amount of the mortgagee's investment in the property. ”

“ In order to reduce the number of foreclosures and to stabilize property values, local economies, and the national economy, servicers must be given— (A) authorization to— (i) modify mortgage loans and engage in other loss mitigation activities consistent with applicable guidelines issued by the Secretary of the Treasury or his designee under the Emergency Economic Stabilization Act of 2008; and (ii) refinance mortgage loans under the Hope for Homeowners program; and (B) a safe harbor to enable such servicers to exercise these authorities. ”

“ And § 256 and § 257 provide that the trustee (or debtor) acquires all rights in, and the right to immediate possession of, the property of the debtor under the control of a receiver or trustee appointed in a prior proceeding in any federal or state court. That is to say, a Ch. X proceeding supersedes a pending mortgage foreclosure. We thus find § 2, sub. a (21) , performing the same function when applied to Ch. X proceedings [7] as it does when applied to ordinary bankruptcy. ”

“ But at the present time, a mortgage is not regarded as a conveyance of title, but merely as a security for a debt, the title vesting absolutely in the mortgagor any time he pays the debt before the actual foreclosure of this right by the mortgagee. ”

“ The object of the provision of the 371st section of the statute of Montana, and of the similar law of California from which it was taken, was to preclude any arrangement between the mortgagor and the mortgagee by which the former's right to the property could be cut off without a sale of the same. It therefore held that the mortgage should not operate as a conveyance, whatever its terms, until a foreclosure and sale. The foreclosure might be by judicial proceedings in equity or by any other regular proceedings which resulted in extinguishing the mortgagor's right of property by sale. ”

“ Jasper asked, in a tone of friendly sympathy and concern.
“Yes, sir; we fear there is danger of foreclosure, should the holder be so inclined; for we lack the means to pay off even the interest that is due.”
“Don’t be uneasy; I trust that danger may be readily averted,” returned the doctor, cheerily; “doubtless the money to pay off the whole indebtedness can be borrowed, the lender being 180 secured by a new mortgage; and I dare say Captain Charlton will be able to arrange the business for you in a satisfactory manner, finding a mortgagee who will not care to hurry you unduly for payment.” ”

“ It the law concerned itself with the motives of parties new complications would be introduced into suits which might seriously obscure their real merits. If the debt secured by a mortgage be justly due, it is no defense to a foreclosure that the mortgagee was animated by hostility or other bad motive. ”

“ Until foreclosure the mortgage is deemed a lien or charge, subject to which the estate may be conveyed, improved, and in other respects dealt with as the estate of the mortgagor.' We cannot see that it makes any difference in principle that the easement in the present case is annexed by the mortgagor by necessity, as the result of the manner in which he has improved the property. ”

“ Subsequently to the execution on the mortgage, the legislature passed a law that mortgagors on a sale of the premises, under a decree of foreclosure in chancery, should have a right to redeem them at any time within twelve months from the day of sale. ”

“ As the holder of both the lease and the mortgage, the firm had the right to seek to prevent the destruction of the one right by the enforcement of the other,-a destruction which would have been threatened by a resort to foreclosure if the agreement to postpone the mortgage to the lease had not been put upon the records. ”

“ The foreclosure of a mortgage shall be a bar to any further suit or action upon the mortgage debt, note, or obligation, unless the person or persons who are liable for the payment thereof are made parties to such foreclosure. ”

“ And meantime the Court had sustained legislation of the State of New York under which a mortgagee of real property was denied a deficiency judgment in a foreclosure suit where the State court found that the value of the property purchased by the mortgagee at the foreclosure sale was equal to the debt secured by the mortgage. ”

“ That 'classical method' of realization upon a mortgage security through a foreclosure suit had always been understood 'to be fair to both parties to the contract and to afford an adequate remedy to the mortgagee'. In that view it appeared that the new law as to proceedings for a deficiency judgment after the exercise of a power of sale 'merely restricted the exercise of the contractual remedy to provide a procedure which, to some extent, renders the remedy by a trustee's sale consistent with that in equity'. ”

“ Duty of consumer To maintain property.— Any homeowner for whose benefit any foreclosure proceeding or sale is barred under subsection (a) from being instituted, continued, or consummated with respect to any homeowner mortgage should not, with respect to any property securing such mortgage, destroy, damage, or impair such property, allow the property to deteriorate, or commit waste on the property. ”

“ It must also be borne in mind that the foreclosure proceedings were public and judicial; that no party to those proceedings owed any duty in repect thereto to the complainants; and if the mortgage property was worth more than the mortgage debts, and if they had any interest in having it realize its full value, it was their right and duty to attend the sale, and either bid themelves the full value or secure others to make such bid. ”

“ The primary object of this Court was, to give to Law the benefit of a foreclosure in all the lots included in the mortgage from Morris, Nicholson and Greenleaf, in whose right, Pratt, Francis and Company founded their claim. ”

“ Any amount recovered by the receiver in this action will go into the corporate treasury and be distributed therefrom to the creditors of the corporation. It appears from the record that the bondholders have brought a foreclosure suit upon their mortgage. They will in that action first avail themselves of the security pledged under the mortgage. They will become general creditors as to any amount by which their security is deficient. ”

“ This remedy of a suit for foreclosure of a chattel mortgage has been adopted in most of the states, and has been much commended by the courts and text-writers as a safer and more adequate remedy for recovering debts secured by chattel mortgages, and enforcing the lien of the mortgagee, than that of actual seizure and sale of the property by the mortgagee, or than the action of replevin, detinue, or trover. ”

“ Equitable Life's remaining contentions are also untenable. It argues that, since the United States concedes the priority of the mortgages here, the attorney's fee is likewise superior, for it must stand on no less equal footing as principal and interest under a mortgage-neither of which is ascertainable until foreclosure. ”