Default Dilemma: Mortgagee in Possession vs Receivership

Key Considerations for Enforcing Your Security

It's no secret that Australians love property. We grow up wanting to buy a first home, an investment property and build a portfolio on the back of that. That has led to real property being the most commonly used form of security in Australia due to its stability, resistance to theft, ease of valuation, and the country's strong and well-defined property laws.

When a default occurs, a lender seeking to enforce its security generally has two options: appointing a receiver or taking possession of the property. This article considers some of the advantages of each option when the borrower/owner is a corporation.

Mortgagee In Possession ("MIP")