MORTGAGORS' RELIEF.

New Zealand Herald, Volume LXIX, Issue 21115, 24 February 1932, Page 11

MORTGAGORS' RELIEF.

AMENDMENT ACT CASES.

APPLICATION FORMS READY.

WORK FOR COMMISSIONS.

[BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Tuesday

Forms of application for relief under section 11 of the Mortgagors Relief Amendment Act, 1931, have now been

printed and are being forwarded to the clerk of each Magistrate's Court in the Dominion, as well as to tho secretary of each Adjustment Commission. Tho applications, when filled up, are to be forwarded to tho secretary of the Adjustment Commission for the appropriate district. The addresses of the secretaries of the North Auckland and Auckland Commissions are respectively tho Supreme Court, Auckland, and the Supremo Court, Hamilton. The Minister of Justice, tho Hon. J. G. Cobbe, explained that applications might bo made by either the mortgagor or mortgageo in an endeavour to arrive at a voluntary modification of mortgage, and must not be confused with the provisions of the Mortgagors Relief Act, 1931, tinder which mortgagors might apply within a certain specified time to the Supreme Court or to a magistrate, after having received notice from the mortgagee under that Act. "Tho setting up of the Adjustment Commissions will not, it is hoped, discourago the voluntary modification of the condition of mortgages by tho parties themselves," tho Minister added. "Where this cannot be brought about, the assistance of an Adjustment Commission can be invoked, but it is hoped that the parties to tho mortgago will first attempt to arrive at a satisfactory adjustment." MATTERS BEFORE COURT. ACTION TAKEN IN AUCKLAND. A considerable number of mortgagors in financial difficulties has taken advantage of the Mortgagors' Relief Act passed last April, and its amendment of November. Somo 50 applications for relief havo been lodged in Auckland sinco the Act came into force. The applications follow upon notice being served by the mortgagee of his intention to exercise his power of sale. The applicants for the most part endeavour to show that their default has arisen from the present economic difficulties, and that tiiev have good prospect of making full payment in tho future. They plead inability to borrow money at a reasonable rate of interest, and argue that under a forced sale a fair price cannot be obtained for the mortgaged property. Many of tho applications that are filed, aro not proceeded with, and presumably in most of such cases a settlement satisfactory to the applicant is reached. Cases that are proceeded with are dealt with by a Judgo in chambers, but there is reason to believe that the majority of tho applications is not granted.