Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-07
FORECLOSURES.

cannot always be avoided There are loaning insti-
tutions which take pride i'll the fact that INA long
career they have never had a foreclosure. These
instances are rare and indicate conservatism in
making loans and also liberation and consideration
in the matter of pressing for payment,
No reputable loaning concern likes to fore
close, 1t is in the business of leaning money in a
straightforward and legitimate way expecting the
interest to be paid when due and the principal to
be paid at the maturity of the mortgage. Its loan
applications arc carefully inspected i1yadvance and
loans are made only to those persons who are be-
heved to be able and willing to comply with the
business conditions which are applicable. occa-
s'onally there is an exception. A mistake may have
been made III the appraisal of a piece of property, a
loan OF unwarranted size may have been made up
on it, and the, owner perhaps finds it more adyan-
|tageous to let the property go than to undertake
TO repay the loan. In such a case, the creditor has
no option. The mortgage must be foreclosed and
the property must be realized on as may be pos
sible. There are other cases where misfortunes
come suddenly and unexpectedly to the borrower,
and he finds it impossible to keep up his payments.
The longer the loan is allowed to run, the more
deeply involved he becomes, and in a case of this
KIND, however disagreeable it may be, foreclosure
is the only possible proceeding, and it is in such a
case to the advantage of both creditor and debtor.
There are cases Of an entirely different char
acter where the loaning of money is regarded as an
opportunity to grasp at unearncd profits. Advant-
age is taken of the necessities of borrowers i'm order
to impose extortionate rates of interest, and advant-
age is also taken OF them when, for reasons over
which they have~no control, they may be debarred
from making payment when due Such an occasion
furnishes an opportunity to the financial leach to
Ipertorm his junction, and there are always those
who are willing to foreclose mortgages under con-
dltlons which will impose hardship upon the Dor.
rover tor the sole purpose of reaping the profits.
such cases are to be found more particularly in
times of financial stress, and it is quite likely that
at the present time men of this type are more active
than usual. and more successful than 1,c,,a1 in p;1;nr
up profits by means of consciencelesS foreclosures.
This kind of business cannot be too severely
criticized. Our country in company with the rest
OF the world has been passing through a period Of
men there has been complete recognition OF the fact
that every possible means should be employed to
relieve struggling people of oppressive obligations.
The policy Of the country has been very largely
planned upon this theory. The merchant has ex-
tended credit to the limit of his ability, has waited
Tor payment as long as he could with safety to him
self. He, in turn, has been accommodated by the
Wholesaler, the wholesaler by the banker, and in
d'v'dual borrowers generally have found it neces-
sary to ask TOR extensions of time which have been
granted wherever the conditions made such extern
sions at all possible. In this way the country has
been able to tide over its period of stress with at
least moderate success. The clouds are breaking.
and 1t is apparent that better times are ahead. Those
VINO have been obliged to wait for the settlements
OF obligations due to them need not in ali probability
wait very much longer, but in the meantime it is
necessary tor all concerned to exercise forebearancc
and tolerance to the utmost possible limit and par
t'cularly in the matter Of mortgage foreclosure, it
ought to be made a cardinal principle, that no such
step be taken except, in the case of dire necessity,
and ii IT becomes, apparent that such steps are taken
without sufficient cause, careful note should be
made OF the circumstances and Of the people in
volved, so that when better times come, they may
hnd themselves suffering some measure of punish
ment tor nisdeeds which the law does not recognize
but which the public conscience should take into
account.