Estate Finance Notes
And now for a complicated concept: equitable suretyship. It’s not a suretyship, but it’s sort of like one. You could also call it a “constructive suretyship”.
When the mortgagee and the grantee make any change, is the mortgagor bound by it in asserting recourse against the grantee? In general, yes. But why do we discharge the mortgagor in the event of certain types of modifications? What harm is there to the mortgagor? First of all, mortgagors will argue that the modification increases the risk of default.
(A little lost here.)
There are many ways that the mortgagee may impair the security.