EXPIRATION OF THE MORATORIUM.

Poverty Bay Herald, Volume L, Issue 16459, 18 June 1924, Page 10

EXPIRATION OF THE MORATORIUM.

(To the Editor of the Herald.) Sir. —It. appears to me that several of the. letters, paragraphs, and columns which have appeared in vours and other papers re the expiration of the moratorium have been calculated to put needless fear into the hearts of mortgagors. One might imagine from reading some of these that when the moratorium expires all mortgagors will immediately have to find the amount of their mortgages. with the only alternative of losing their property. Ido not mean to suggest that there is no danger to any mortgagor. Brnt- Ido consider that the danger has been much exaggerated. To begin with mo”tgages registered after October, 1919, are exempt from the provisions of til© moratorium. There must he quite a large number of these that the expiration of the moratorium makes no difference to whatever. Now w ; th regard to mortgages that do come under the moratorium: Take the case of a mortgagor who has paid his interest regularly, and has kept the conditions of his mortgage. It is quite likely that the mortgagee may not want his capital to re-invest. Ho is getting interest on his money, and if lie is satisfied with the security,, he is more than likely to let iiis capital remain where At is. If he does want the money, a mortgagor who has paid interest, regularly is likely to b e able to borrow elsewhere, provided he can show a fair margin of security. But. suppose lie is unable to borrow elsewhere, after trying his best to do so. I do not think there are many mortgagees who under the.se circumstances would foreclose on the properly. Now with regard to th e mortgagor who has failed to pay bis interest regularly, lie will certainly be in danger when the moratorium expires. But lie is in danger now. The mortgagee, could : fore close now by getting, the consent of trie Supreme Court, which would 'probably not he difficult >when interest is in arrears. Also a mortgagor who fails to pay his interest may reasonably expect. to be in danger, both now and at any future date. There is also the case of tlie man who is the nominal owner of a property mortgaged above its value. Unless lie' has other property, lie is insolvent ; and unless he can get the mortgagee to make some adjustment, lie has already lost any equity he may have had in the property. So far as I can see, the moratorium, or expiry thereof, makes no difference to a mortgagor in this position, a.s in a. good many other cases. It is well .to strike a happy medium. Don’t get in a panic, and don't go to sleep. Do your best to be prepared for an emergency that may come, but very