Mortgagee Sales, Disclaimer and Escheat - A Suggested Statutory Solution.

The process by which a registered mortgagee may exercise power of sale following default by a mortgagor is well understood. However, where the mortgaged property has been disclaimed as being onerous property by a trustee in bankruptcy or a liquidator, the case law reveals that there is uncertainty concerning the manner in which the mortgaged property may escheat to the State. Faced with this dilemma, mortgagees are increasingly seeking vesting orders and joining the State as a party in order to facilitate the sale process. This article examines the unsatisfactory state of the present case law and suggests a statutory solution consistent with a mortgagee sale largely remaining a non-curial process. [ABSTRACT FROM AUTHOR]