There is a useful provision in all Torrens Legislation that allows a mortgage lender, in the event of a default, to write to the tenants and direct them to pay their rent directly to the lender from now on. What makes tenants prompt in doing so is the law’s provision that should they continue to pay the money to the owner of the property they will nevertheless still owe the rent to the mortgage lender. The prospect of double jeopardy rarely fails to have the desired effect.
The rent money is credited to the unpaid interest and in that way benefits both the lender and borrower equally.
The Enforcement Process
Step 1 – How to avoid enforcement
Step 2 – Informal enquiries
Step 3 – Default Notice
Step 4 – Rent Notice