Stephane’s brother Sebastien lives at number 15 Cotton Village with his partner Mark. Sebastien and Mark bought the house in 2016 with the aid of a mortgage from PABC Bank. Unfortunately, Sebastien has recently experienced health issues that have affected his ability to work and this has led to him falling behind with the monthly mortgage payments. Mark is a housemaker and so does not earn a wage. The couple have now missed the last four mortgage payments and have received a letter from the Bank which states that it intends to ‘invoke immediately its rights and remedies’.
Address the following issues (we would advise that you use no more than 1500 words on this section). Explain your reasoning including reference to statutory material and case law where relevant:
- What steps should PABC Bank take before seeking to enforce any of its legal rights and remedies?
- In brief, what legal rights and remedies does PABC Bank have and which of those are the Bank most likely to pursue and in which order?
- If the Bank chooses to seek possession of the house, what is the likelihood of that claim proving successful?
