Our Mortgage Recovery lawyers are experienced in advising banks and lending institutions in all aspects of mortgage recovery, including matters involving fraud.

Partner Rod Cameron leads the Mortgage Recovery team with the assistance of Associate Cindy Shum.

In acting for lenders, we regularly:

• issue statutory notices for mortgage default
• initiate proceedings for possession in the Supreme Court of New South Wales  
• take possession of properties after due process
• act on the sale of security properties by mortgagees in possession
• act on the discharge of mortgages
• contest defended mortgage recovery actions
• respond to claims under the Contracts Review Act, Consumer Credit Code, Trade Practices Act, ASIC Act and Farm Debt Mediation Act 
• respond to allegations of unconscionable conduct, and
• investigate schemes involving fraudulent borrowing.

We also advise clients on:

• sales by mortgagors that are likely to result in a shortfall of monies owed, including whether such a sale is in our client’s interests
• mortgage recovery actions involving deceased mortgagors
• undertaking bankruptcy proceedings against borrowers and guarantors, and
• alternative methods of obtaining possession of security properties, such as rent redirection and taking vacant possession.

To support cost-effective outcomes for our clients, our Mortgage Recovery team pursues alternative dispute resolution options where appropriate. 

We also consider legal options such as recovery and contribution that may improve our clients’ financial outcomes. For example, in recent matters:

• Hicksons acted for a lender in defence of a borrower’s claim for relief from all obligations under the borrower’s loan agreement and mortgage.  The mortgage broker was involved in the litigation. Hicksons negotiated a settlement of the litigation on the basis that the borrower refinance the loan for a reduced amount with the mortgage broker paying to the lender a substantial component of the difference between the original loan amount and the reduced loan amount, and
  
• Hicksons acted for a lender in a defended mortgage recovery matter. A prior mortgagee and the mortgage broker were joined in the litigation. Hicksons negotiated a settlement where the prior mortgagee and the broker largely funded the borrowers to hand over possession of the property to the lender.

Hicksons clients benefit from our expertise and experience in contested matters where settlement cannot be achieved. Recent cases we have conducted for lenders include:

• PCL v Yazgi - where the lender succeeded in securing half the value of the property plus half of a refinance amount plus interest on that half refinance amount in circumstances where the signatures of one of the borrowers had been forged, and
  
• Spina v PCL - where the lender succeeded in enforcing its mortgage and securing costs orders despite allegations of fraud on a power of attorney, unconscionable conduct and entitlement to Contracts Review Act relief.