Victorian Consolidated Legislation

Property Law Act 1958 - SECT 87

Foreclosure extinguishes right of action for mortgage debt etc.

87. Foreclosure extinguishes right of action for mortgage debt etc.



(1) On a decree judgment or order absolute for foreclosure the mortgagee shall
be deemed to have taken the property mentioned in such decree, judgment or
order in full satisfaction of the mortgage debt and his right or equity to
bring any action or to take other proceedings for the recovery of the mortgage
money from the debtor, surety or other person shall be extinguished and the
right or equity of the mortgagor to redeem the said property shall also be
extinguished.





(2) In the case of mortgages of land under the Transfer of Land Act 1958 order
absolute includes an order for foreclosure under the hand of the registrar
when recorded on the Register.

(3) Nothing in this section shall be deemed to disentitle the mortgagee (on
such terms and conditions as to the Court seems just) from obtaining
foreclosure of any other property over which he holds security by way of
mortgage for the said money or part thereof or from enforcing all or any
rights, powers and remedies expressed or implied in such mortgage except the
right to sue the mortgagor or any surety for the mortgagor either for the
mortgage money or on any bill or note given as security for the mortgage money
as if this section had not been passed.

(4) This section shall have effect notwithstanding any stipulation to the
contrary.