Real
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.