A mortgagor may be entitled to make a claim against a mortgagee if there has been a breach of the mortgage agreement. The most common breach is a failure to pay the amount required by the due date.
The rights available to the mortgagor following a breach of the mortgage will depend on the terms of the mortgage. They may have right to:
- Call upon the balance of the debt immediately,
- Lodge a caveat over the property;
- Terminate the mortgage;
- Commence legal proceedings for the recovery of the debt and subsequently enforcement action which may include an order for the property to be sold.
In some instances, a mortgagor may be willing to negotiate with a mortgagee to remedy the breach. This may include allowing a payment plan for the payment of the amount outstanding. There are however no guarantees that a mortgagor will be understanding and willing to cooperate in the event of a default by a mortgagee.
If you are experiencing financial difficulties and expect to be unable to meet your mortgage repayments, it is recommended that you make enquiries as to whether your mortgage terms allow hardship applications to be made to tentatively reduce or suspend payments, and prior to any breach of the mortgage.
If a mortgagor has made a claim against you, we recommend that you contact our firm and arrange an appointment to see one of our Mortgage & Caveat Dispute Solicitors. Please contact us by telephone on (02) 9233 4048 or send an email to info@navado.com.au.
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
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