DANGER OF TRICKERY.

Taranaki Daily News, 12 July 1922, Page 5

DANGER OF TRICKERY.

TROUBLES OF MORTGAGORS. ■IN CASE OF FORECLOSURE. (By Wire.—Parliamentary Reporter) Wellington, Last Night. The disability under which mortgagors subject to foreclosure suffer as a result of insufficient advertisement of the sale of their properties was mentioned in the House to-day by Mr. J. A. Young (Waikato). The present conditions, he argued, led to trickery. Illustrating his point, Mr. Young quoted the case of a woman who had bought a property and paid £4OO as deposit. She was to pay off £7O in 12 months and the balance of £3OO or £4OO was to stand on mortgage at six or seven per cent, for a term of years. Misunderstanding the position the woman, who admittedly had been somewhat obstinate, had not paid £7O and the mortgagee had foreclosed. The woman, since the advertisements had been published, was in a position to pay £7O, but to clear the property she would have to find the other £3OO or £4OO. This she could not do and the property was to be sold. What had become of the £4OO deposit? Mr. E. J. Howard (Christchurch): “The sharks have it.”

Mr. Young said what would, happen was that probably the mortgagee would go into the auction mart and buy in at his own price. Mr. Howard: “And vote reform.”

Mr. Young said the present form of advertisement in such eases was totally inadequate. It was not fair that land should be put up for sale with an indefinite description. The name of the mortgagee, the amount of mortgages, the rates of interest and the cause of the foreclosure should all be published. Mr. W. T. Jennings (Waitomo): “Hear, hear.” Mr. Young: “And plenty of time should be given.” The advertisement should give a full description of the property and every opportunity should be given the mortgagor to redeem the property if possible. This question would have to be tackled and it should be tackled this session. The present system lent itself to trickery. The Minister of Education: “The Registrar of the Supreme Court frames the advertisement.”

Mr. Young: “Yes, but he makes it in accordance with the Statute. An amendment is necessary to compel him to put in better and more adequate advertisements.”