, 1879-05-25
SUMMARY FORECLOSURE,

-. TO tbs Editor OF The Tribune
- CA1cAeo, May 24-Refcrrng to the article i,
"Abolishing Summary Foreclosure, u the writer
having been engaged in the negotiation OF real
estate loans in Chicago during the past ter
years desires, II possible, to correct the imprcs
sion conveyed, believing the old statute far bet
| ter for borrowers than the law which, if not re-
| pealed, will take effect in July next
/ Representing one agency that has quietly done
its share of business, can say the new law. II
not repealed, mar have the effect Of requiring
| the mortgagors owing money to effect new
loans elsewhere, or make payment when the
present Indebtedness natures. Foreclosure By
newspaper notices may have counted for very
little to parties not informed or interested but
the fact remains that there is as little probabil1.
ty Of such foreclosures being set aside as II by
decree in court
Where loans have been made under mortgage
instead OF deeds Of trust, as there has been
question as to the right OF the mortgagee, II
holder OF the fncumbrance, to purchase at sale
made by mortgage under the power of sale
contained in the mortgage, it has been custom
ary to resort to decree in chancery- The Com
pany referred to in Jour article, believe, do
not, as rule, go into court to foreclose trust
deeds.
Good rea]-estate lawyers long ago ceased to
reject titles in which such summary 1oreclos-
ure was part Of the chain,-providng of course
the proceeding were regular.
The quit7c]atm deed is not insisted unon by
good real~estate lawyers in addition to such
sale under trust-deed.
As al illustration of the difference in the
equity OF the two WAYS Of -1oreclosing, / would
say that upwards of two years ago party hold
ing trust-deed 1ncumbrance where the indeb:-
cdness covered the value of the security, owing
to long-contfnued default by the mortgagor,
desired to obtain possession Of the premises,
and, upon the advice OF his attorney, filed bill
in chancery to foreclose the trust-deed, and
Receiver Was appointed. The mortgagor, being
in possession refused to surrender, and is still In
possession, and the holder OF the 1ncun brance
is unable to obtain the premises or rent for the
use Of the same,-and the expense Of the pro-
ceedings have been three times as great as If
BY trustees sale after newspaper notice.
The statement Is made in the article referred
to that summary foreclosure has been long
time abolished in tile Eastern States. The Dro-
ceedinEs in Massachusetts are as summary as
hereby newspaper notice.-a decree in court
not being required, although there is time al
lowed 1or redemption. Money-loaners in lii
nos would 1e glad to exchange the laws for col
rs Massachusetts. Money-loauers do not desire
to acquire property by foreclosure, as those who
choose to invest in mortgages rather than In
buying and selling' real estate prefer fixed,
definite sum for the use Of money to the chance
Of realizing greater or less amount BY owning
real estate. And. as far as my correspondents
are concerned, they have In every case been glad
to recourey property acquired by foreclosure
upon payment OF principal. interest, and costs.
without limiting the time to fifteen months.
-, ~ aa.;ra 49,
s,;i, - ~ - ;.,+".a4 aAo - ~
lts ~ "a - - Iii ~. n1:s ~ ettea eiente
t;et - 80 paohaIr F. - M.:..ht r. o1Sn Mi pai
tte;rd - = Rr;d1e~ y - CoIa Thasa - tJIn' tJIn'
G11.,,e ~ s. To1,sr,1 T,po1d7n;n ~ -, ~ y
Pasrspne + ~ ~ nt1,ars NJ aanoI .t.1,,1,,-r H. ~.
n,os+ -. ~ ~ u ia1ae -; W Us
erccntinp to cnre defert in tit,e ~ whnre'
1t is foolish to conclude that because money
is plenty at the present time money-loaners will
not care for the control OF It and the safety OF
its investment.
There would probably be M obfcction In o1-
LOVING definite lime for nt;on aftnr fara-
closure. bnt there is objection to the de1av md
arnonsa inc;31an+ ~ forac1os11-a +, oanr+ AA1
!. The nartics to he most seriously affec+ad :h1
+be new law viii he those WIN tini Il d,ff;on1t ~
save. their nortpapei1 nreno5ses aid 1rhjIa s,at
a law cannot comnel anv one tn loan monav H.
can nrevenr the borrower from no-inT :neh ~
contract us he desires r II W" 70
We willingly nrint the above which r;raa tha
Lenders, view of .the coee Tan ~ao-e,
eTncrjence in ner-lenf1inr IN Ch;coro bos -,
donht hcon valnahIe to mr. corresnnnion+ n,,t
+ faa ~ heen 1on0 enonoh ~ onoh1a ~, w ~
onao1. win an+hnr;fv Tn mms+ ~ hao,. ~ - ~
forcciosnrce mode a}tor 7~ lava W 'As
-x~..
THE fAAlc OF 1oof.
great many OF these we're opened when the
rising prices OF the War made It profitable to do
80, and numbers Of them we're set aside The
same late will befall many Of the fore
closures made since the panic OF 1873, as