Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1913-11-21

has received no notice OF the trans
fer and in good faith pays the mon
ey over to the person to whom he
gave the mortgage, he will be pro-
tected and the mortgage held dis
charged.
It may be that both parties feel
that the mortgaged property is
worth just about the amount due
and the mortgagor is willing to have
the mortgage take it in full settle
ment and that the mortgage is
willing to receive it. If this is done
under definite agreement the mort
gage is discharged.
In most states it is held that
once the mortgage has become past
due, the mortgagor having failed to
pay it in full at the time specified,
the holder of the mortgage has be-
come the owner of the property and
has the right to claim it without
further ceremony. 1t is only neces-
sary that he claim it and take poss-
ession in a peaceable manner In a
North Dakota, Oregon, Texas and
Washington, regular foreclosure pro-
ceedings are necessary before the
holder of chattel mortgage can
take possession of the property COW
cred.
But even though the mortgage debt
| is overdue, and the holder has Ia
| ken possession of the property the
mOrtgagor's rights are not an end.
He still has what is known as an
equity of redemption-that is he has
| the right to redeem the property by
paying ali the money due, including
principal, interest and necessary ex-
penses. The time within which one
may redeem after the day when the
mortgage was due, known as the
period of redemption, is fixed in a
| few states by statute, as in Maine,
| Massachusetts, Minnesota and Rhode
Island, where it is sixty days and
Kentucky, where it is five years.
In other states the courts allow what
they deem to be a reasonable time
| He may bring foreclosure proceedings
under all the circumstances of the
! case. "
The mortgage, the holder of the
mortgage, has it within his power
to cut off this equity of redemption.
He may bring foreclosure proceedings
in court of law by which the mort
gage is definitely closed. By these
proceedings disposition is made OF
the property at a mortgage sale un-
der the direction of the court. From
the proceeds the expenses of the
sale are paid, the amount due the
holder of the mortgage under the
mortgage is paid, and if there is
still a balance remaining it is re-
| turned to the man who originally
gave the mortgage.
BY the terms Of many mortgages
of movable property the holder, af-
Ter default of payment, has the right
to conduct a public sale of property
for himself, without having recourse
to foreclosure proceedings This sale
must be fairly conducted in every re-
gard and should always be by pub
lie auction, though private sales are
sometimes cOuntenanced or agreed
! to by the mortgagor. The proceeds
of the sale are disposed of in exact
ly the same manner as after sale
on foreclosure. Either a foreclosure
or a sale under a power in the mort
gage cuts off the equity of redemp-
ton
Thus it is to be noticed that the
mortgagor-the man who gave the
mortgage-has very real interest
in the property, even after the mort
gage is overdue. If it is worth more
| than the debt, the surplus must be
returned to him, and so he has an
interest in seeing to it that the sale
is fair and for the highest possible
amount. Notice should always be
given the mortgagor of the sale OF