Default Notices

Ward v Smart So Hoe [2015] VSC 691

A lender sued for possession and judgment. The guarantor who mortgaged his property as collateral for the loan counterclaimed for redemption. The court found the lender’s default notice was invalid because it incorrectly identified the event of default, being the non-payment of interest because interest had been pre-paid. However the court found that the owners …

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Salta Constructions v St George Bank [2014] VSCA 289

We previously reported on the trial at first instance. This note is about the appeal. St George (as first ranking mortgagee) sold the property for $20 million and retained all the money against a debt it claimed was $54 million.  Salta Constructions (as second ranking mortgagee) argued that the bulk of the money claimed by St …

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Permanent Custodians v Portland Terrace [2013] VSC 544

The lender alleged the borrower default by failing to provide the information requested by the lender relating to its business. The judge refused summary judgement noting: There is a respectable argument that a reasonable time would, as a matter of law, be required to respond to a demand under that clause before default occurs. Given …

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Wilde v Morgan [2013] VSCA 250

A defaulting borrower was served with a default notice at the property’s address rather than his PO Box used for previous communications and he challenged the validity of the default notice and the lender’s subsequent entry into possession. The mortgage provided for a number of alternative methods of service, including service at the property’s address. …

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GE Mortgage Solutions v Whild [2013] VSC 503

The borrower defaulted as a result of the lender failing to upload new account details onto its computer system. The lender took possession and sold one of the mortgaged properties to a third party. The borrower brought an application before the tribunal claiming that the default notice was defective because at the time of issue, …

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CBA v Kilpatrick [2013] NSWSC 169

The borrower claimed default judgment was obtained illegally because there had been a failure to serve the s 88 notice under the National Credit Code. However the judge noted that strict compliance with such notice requirements is not necessary as long as the borrower gets the gist: There is a whole series of authorities to …

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Trust Company v Berry [2012] NSWSC 1260

The borrower defaulted on a mortgage and was served with two invalid s57 (2)(b) notices by the lender. Despite the invalid notices, the lender obtained a writ of possession in undefended proceedings. Prior to selling the properties, the borrower put the lender on notice that their invalid notices would be challenged if the lender sold …

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