At Bransgroves Lawyers, our core focus is assisting lenders in securing and realising mortgage interests in real property. However, we have made a considered decision not to act in post-sale recovery matters—specifically where the lender suffers a shortfall after the sale and wishes to pursue the borrower personally, including by way of:
- Bankruptcy proceedings;
- Writs against personal property;
- Tracing claims against company directors or related parties;
- Recovery actions targeting allegedly dissipated funds.
This is not a reflection on the legitimacy of such claims but rather a practical policy grounded in client experience. In our extensive dealings with lenders over the years, we have observed that:
- Such proceedings are rarely commercially viable—borrowers typically have no meaningful assets left to recover against after the loss of mortgaged property.
- The legal costs can outweigh the potential benefit, even where a judgment is obtained.
- Clients often become frustrated with the outcome, particularly when the hoped-for recovery does not eventuate.
- This can lead to resentment over legal costs, undermining long-term professional relationships and creating dissatisfaction on both sides.
- Our solicitors are placed under undue pressure because such work is not their core business.
For these reasons, and in the interests of maintaining positive and constructive partnerships with our lender clients, we do not undertake litigation aimed at chasing post-sale shortfalls or tracing dissipated funds.
We remain fully committed to enforcing mortgage securities, conducting mortgagee sales, and advising on complex mortgage-related issues. If you have any queries about the scope of our services or would like to discuss an enforcement strategy, we would be pleased to assist.
