Astrid borrowed $500 000 from Bartholomew.As security for the repayment of that loan, she created a mortgage over a piece of land called Blackacre.That mortgage was immediately registered.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

If Astrid defaults on the mortgage, Bartholomew can use the remedy of judicial sale to sell Blackacre for the highest possible price in order to recover the amount of the mortgage debt, plus interest and costs, including the costs of sale. Therefore, option B is correct.

Option A is incorrect because until Astrid repays the loan, Bartholomew holds the mortgage, not an equity of redemption.

Option C is incorrect because if Astrid defaults on the mortgage, she cannot obtain a decree nisi from a court which automatically gives her the right to pay at her convenience.

Option D is incorrect because if Astrid sells Blackacre to her friend Elsa, Bartholomew will still be able to demand repayment of the loan from Astrid, as the mortgage would still be in effect.

Option E is incorrect because if Astrid defaults on the mortgage, Bartholomew can obtain a foreclosure without having to first obtain an order for possession, as the mortgage gives him the right to take possession of the property.

Astrid Borrowed $500 000 from Bartholomew