Can a mortgagee who has sold the mortgaged property be reinstated in his right to sue for the mortgage debt?
Saskatchewan, Canada
The following excerpt is from Great West Life Assurance Company v. Campbell, 1927 CanLII 274 (SK CA):
This allegation is verified by affidavit of the plaintiff's assistant-treasurer. It really amounts to an intimation that, upon payment of the mortgage money, the plaintiff will be in a position to reconvey the property to the defendant. But, even so, it is questionable whether by such an expedient a mortgagee who has sold the mortgaged property can be reinstated in his right to sue for the mortgage debt. Thus in Gowland v. Garbutt (1867) 13 Gr. 578, at p. 583, Vice-Chancellor Mowat uttered the following weighty dictum respecting a similar intimation from counsel for the mortgagee: Assuming this to be so, mortgaged property cannot be redeemable and irredeemable, from time to time, and the mortgage debt discharged and revived, at the mere pleasure of the mortgagee and those claiming under him. The right to foreclose once gone is, I apprehend, gone for ever.
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