The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-11-25


0igyntasn-
TuE yonxCLOsCRE LAWS.
Il y apparent char sAers III - strong
effort uads ~ The coming ssssson Of Tie
t4efalaxurs - pass eozna measures DE-
olgnsa 70 smenA ~ sxssssrx ssss rsiassvs
- soysesosaFss ~ m1rsgsxss- \ principal
sb5ecx 81 atssek VII se the pscvssscns
sashcr.zzng ths taxing u dsncssncy
1udgm<ns tn c2sss where ne property sold
uzzssr foreclosure eoes rot bring the
amount for which !. morsgawe6 togsshsr
with interest ard costa
There are . large number q crude ~
formers who utterly fan 70 grasp The fsss
ssaded - relieve 9sbsors ~ class. which
n practical op~rztis a ever RESI- - 10 iissag
cay portion Of their burdens. Every meas
rre6 designed 70 make II more difsfcut for
creditors to realise upon securities nas ths
eject of making It more csn,cuis 20 obtain
issns. szsd also raise the interest caxrgsA
II q . bustn~s axiom. that interest A.
Ways increases with the inrreass Ia the
sssx, and the afnscassy tn rea..stns upoe
securities.
In the matter Of deficiency tudxments
there b saofhsr point 10 be taken into
eonasderstIea Which = that mortgages are
OLSEN mads. net - security for = present
lean. bus 70 sscurs . prs-sxistinx indebs-
sdness. In such cases. the property put
40 q security nay ~ worth considerably
less than the debt n u presumed TO SCI
cure II would be sntassics TO the creditor
10 such case - compel him 10 accept
this deacien< security In fun Satisfaction
OF his sndebsedness-
There a. however. ore manner IN which
the existing Law governing foreclosures
can be amended 10 q manner which WIN
be Of decided benefit TO The debtor, which
viii reduce the probability Of deficiency
tudgusnss. and which viii work no sub
sfantial injustice TO the creditor. Uadsr
che law ~ II exists al present. when
nortgags is foreeIosed. the property 10
sold. deed pasxes to the purchaser. and
ths noft9Axor - given . year IN which 10
redeem from such sale. Tho practical e.
fec: - the law " that there are no bid
dsrs u the sale, excepting tho holder Of
ths mortgage. who takes In the property.
no matter what ~ value at his own nx-
ure. There 10 no incentive for any one
else 10 buy for the reason THAI . would-be
purchaser would not know TOR ysar after
be paris with nis money whether he vas to
actually receive . title to the property. or
whether he would rscelve bis money back.
creasss very materially In value. he II a.
most esrtatn to receive bis money back.
and not TO Get the property. Il y very
rare that IN investor can b found 70
whom IL h matter Of indifference whe,h-
or hs has made an actual purchase os real
prgersy. or whether he has made whak
amounts to simply loan u his uonsy.
II does not follow that the years ~
dsmpsion time should not be allowed
There are good reasons why An abso<uss
forfeiture should not follow rnsll ths
mortgage should have had . reasonable
time In which TO redeem II would seem.
however. that for the interests OF Al il
would b better to have the years re-
censption time run before. instead OF after
ths Sale Foreclosure proceedings could
fellow the present course down TO the de-
cree. which could recise that 4 redemption
WAS not had within one year. the property
ahoald be sod IN satisfaction Of the mort
shouid be complete and absolute one.
ard the purchaser should take clear title
10 the property ~ soon as the sale IL
confirmed ey the court.
with such an amendment to the existing
Law. judicial sales under foreclosure or
execution would be on precisely the same
footing as sales IN the probate department
OF the coar;. Such sales would be looked
upon by men OF means as afrerdins a good
opportunity fer profitable investment. The
property would certainly hring nearer It's
true value. ard II II brought mare than Tire
amount Of Judgment. the balance could De
paid to the owner. The system woa,e BE-
OF benefit TO the holder Of the mortgage.
fer !, would save him from the present ex-
isans necessity % buying in the property
himself. paying the court eosts gu, Of his
cwn pocket, and thea locking for . pur-
chaser. 50 sha: he could Sc; his money out
II - quite safe 10 say THAI we're this slna-
pie amendment made 10 the existing mort
gage law. there would be very few cases
hereafter az deficiency judgments. exeep,
N The rare contingency whsn The prep
ersy has been saortgawes for more than its
actual value. and In that case. the holder
OF the mortgage ought. as a matter %
common taSstcc. ~ have = deficiency ;udg-
meat to snsstle him 20 the return OF the
money which ae has actually lent. wtrA
interest. according 20 ths terms Of the con-
tract.