Typical mortgage enforcement process

Before a mortgagee can attempt to enforce a mortgage, there must be a default by the mortgagor. The terms of the mortgage will determine what constitutes a default. Failure to pay interest on time or the principal of a loan by the due date are very commonly committed defaults, but many mortgages include a long list of other instances in which a default will be deemed to have occurred.

This guidance note starts with commentary regarding the concept of default, and moves onto considering the mortgagee’s goals in the event of default and when taking enforcement action. This is followed by an overview of the typical mortgage enforcement process, focusing on non-National Credit Code (Code) regulated mortgages. This is the case for most guidance notes in this subtopic — a separate guidance note considers matters relating to the enforcement of Code-regulated mortgages.

See Typical mortgage enforcement process.