Turner UK vs US

 

In Turner, a paper written in 1935, comparing the English and US systems, the author agrees with the case where the judge holds that the sale of a property in execution should not be confirmed until and “unless the value of the property is bid or credited to the borrower”.[1]

There was a moratorium in England during the First World War and some lenders withdrew from the market.[2]

Costs of foreclosure at that time in the US almost 10% of the mortgage debt[3] vs 2.5% to the auctioneer in England and 1-2% to the solicitor[4] (less for larger properties)[5]

Turner opposed the redemption period.[6]

In England, the bank cannot be a purchaser.[7]

Sale need not be by auction but must be at a reasonable price.[8]

Turner makes the argument against redemption periods.[9] The argument applies with more force against long periods (12 months is mentioned) than short (one or two months).

Maybe better the sale is confirmed if its within 10% of market value as defined before. Waiting for confirmation on every occasion may be too much. Or that the (see Turner 606 for his view) guy must complain within 2 weeks presuming he was properly served.

[1] Turner 602

[2] Turner 602

[3] Turner 602

[4] Turner 608

[5] Ibid

[6] Turner 603

[7] Turner 603

[8] Turner 603

[9] Turner 603