99Order for foreclosure

99 Order for foreclosure (a) the Registrar-General has published a notice under section 98(2) offering the property for sale by private contract; (b) the date specified in the Registrar-General's notice has passed; and (c) the mortgaged property has not sold, the mortgagee may apply to the Court for an order for foreclosure. (2) Before making the order for foreclosure the Court must: (a) be satisfied that: (i) the mortgagor has defaulted in paying the principal money or interest and the default has continued for at least 6 months; (ii) notice requiring payment of the amount that constitutes the default has been served on the mortgagor in accordance with section 89(1)(a); (iii) the mortgagee has, within 2 years before making the application to the Registrar-General under section 98(1), exercised the mortgagee's power of sale and offered the property for sale at public auction; (iv) the amount of the highest bid at the auction was less than the amount of money owing to the mortgagee and the costs, charges and expenses incident to the sale; (v) notice in writing of the mortgagee's intention to apply for an order for foreclosure has been served on the mortgagor and each person who has a registered interest in the mortgaged property subsequent to the interest of the mortgagee; (vi) the Registrar-General has published a notice under section 98(2) offering the property for sale by private contract; (vii) the date specified in the Registrar-General's notice has passed; and (viii) the mortgaged property has not sold;

Law of Property Act 2000 65 (b) determine the market value of the mortgaged property; (c) determine the market value of each registered interest in the mortgaged property that has priority to the interest of the mortgagee; and (d) determine the value of each registered interest in the mortgaged property subsequent to the interest of the mortgagee that represents the proportion that the value of that interest is in relation to the amount of the market value of the mortgaged property less the money owing to the mortgagee, the amount of the market value of any prior registered interests and the costs, charges and expenses of the mortgagee in exercising the mortgagees right of foreclosure and selling the property; and (e) identify any other interests in the mortgaged property. (3) On complying with subsection (2), the Court: (a) may make the order for foreclosure; and (b) if the Court makes the order for foreclosure: (i) must make the orders it considers just to ensure that the mortgagee will either pay to each person who has a registered subsequent interest the amount representing the value of the interest established by the Court under subsection (2)(d) or offer the person security for the repayment of that amount; and (ii) must make the orders it considers just in relation to the other interests in the mortgaged property and the payment of the costs, charges and expenses of the mortgagee in exercising the mortgage's right of foreclosure.