Payment in or limited liability to the price of the mortgaged floor

Abstract

Mortgages are in a whirl. Just as soon as the judgment commented on in this article came out, the government invented a new way for mortgage borrowers anxious to get back what they overpaid under “floor clauses" to bypass the congested judicial system. I am going to take a deep breath and, with the calm afforded by the stately pace of court workings, I am going to comment on a judgment that many identify as surrender in lieu of payment, but which actually just annuls two abusive general conditions that used to saddle mortgages with two additional guarantees: the present and future assets of the borrower and a joint third-party bond.