Article Summary
A bank can often sell a mortgaged property in Australia without obtaining a separate court order authorising the sale itself.
Most mortgage documents contain contractual powers of sale that become exercisable after borrower default, provided statutory and contractual enforcement requirements have been satisfied.
However, where possession remains disputed, lenders commonly seek court orders for possession before exercising a power of sale.
Importantly, repossession and mortgage sale do not automatically extinguish the borrower’s debt. If the sale proceeds are insufficient to repay the outstanding loan balance, accrued interest, default interest, legal costs, and enforcement expenses, the borrower may remain personally liable for the remaining shortfall debt.
