HELPING THE MORTGAGOR.

Taranaki Daily News, 7 February 1922, Page 8

HELPING THE MORTGAGOR.

AN EQUITABLE ARRANGEMENT. It appears that the only hope of a| equitable readjustment in regard to mortgages must be mutually between the mortgagor and the mortgagee, and one of the best arrangements we have yet heard of came under our notice recently (says the Ehrwera Star). A sold his property to B. A . certain deposit was paid and a mortgage taken over the property to secure the remainder, which, as in most cases, represented the greater part of the purchase money. With the factory pay-out down to one shilling B now finds that his total revenue is not sufficient to pay’ even interest on his mortgage. He hart absolutely nothing, therefore, on which to live or pay local rates and taxes. He realises that it is folly to go bn under those circumstances and so arranges a conference between the mortgagor, a local solicitor and himself. All parties approached the position as reasonable men, and the result was an arrangement on these lines: If butter fat realised 1/- half thq interest.only is to be paid; if 1/6 threequarters of the interest, and if 2/- the whole interest. This was the basis agreed upon, with adjustments pro rota on every penny variation in the price of butterfat. This arrangements gives. B every chance to carry on under present conditions; it gives him an opportunity to save his deposit money; it prevents dislocation in the working of the farm and ensures continuous production; and after all leaves A in certainly no worse position than he would be in were B compelled to throw the farm back on his hands. We believe that if some such arrangement could be adopted as a general basis in regard to readjustment of mortgage interest over high-priced land .it would do more to solve the present problem than any Government legislation would do.