Wednesday, July 20, 2022


Having recently heard the sad story about a property owner in Barbados who fell seriously behind in his mortgage payments to the bank, and was later heard to complain that the foreclosing bank turned around and sold his former holdings for twice the amount of the debt, but failed to remit the overage to the debtor, there's a lesson for everyone in this story. 

Don't allow the property to pass out of your hands; sell it to the highest bidder before the foreclosure is complete, because the bank, in this story was probably took title to the property at the foreclosure sale, and thereafter found a buyer for a much larger sum. I don't understand why the debtor failed to do this. Did he not have competent legal advise, or did he simply assume he would be receiving a cheque for the difference between the mortgage debt, and the sales price ? 

Given the lack of integrity in the Bajan legal profession, there may have been some professional misconduct in the story; likewise, the bank itself may have some degree of blame. The real issue that should be examined is how the property owner had a large mortgage on his property in the first place ? How was it that he was unable to make the payments as they came due ? If he didn't have sufficient income, why did the bank lend to him in the first place ? If the bank's true motive was to eventually end up with the property, then perhaps the matter deserves further inquiry. The bank's conduct then deserves further attention.

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