Consumer Compliance- Week 6 Discussion Post And Student Responses – Coursework Example
Consumer Compliance Response A lender has no legal ity to check on what the borrower is doing on the mortgaged premises. The only situation that can give the lender powers to check on the premises is when inspecting if the borrower is maintaining the premises properly. The situation also depends on the mortgage contract signed by the lender. Some contracts give lenders the power to inspect their property whenever they think the borrower is contravening terms and conditions of use (“Safeguard” 2015). It is, however, important to note that it is the duty of local and state enforcement to counter the sale of illegal drugs. The lender is not one of those legal entities and should instead report his worries to the authorities (“Home” n.d.).
I totally disagree with your position. According to your statement, the lender has the right to inspect the property, but not on the illegal drugs trade. It does not mean that selling illegal drugs compromises the state of the premises. Is it that you did not understand the question? It was about selling illegal drugs on mortgaged premises and not the reckless use of the property.
It is true the lender has the right to inspect the premises to ensure they are being accorded appropriate care. Selling illegal drugs, however, does not mean the borrower is not taking care of the property. The sale of the drugs does not distort the physical state of the property. The lender should be accompanied by the relevant authorities for the inspection.
Hello, this is the most appropriate response that I have come across. I have never heard of a situation where a lender enters to a borrower’s premises to check on businesses being transacted. The borrower has the right to reject such inspections. I concur with you that only law enforcers should inspect the premises for illegal drugs.
"Home" (n.d.). Home Ownership. Retrieved May 30, 2015, from http://www.americanbar.org/content/dam/aba/migrated/publiced/practical/books/family/chapter_5.authcheckdam.pdf
"Safeguard" (2015). Mortgagees Right to Protect its Collateral Interest. Retrieved May 30, 2015, from http://safeguardproperties.com/News/All_Client_Alerts/2006/03/Mortgagees_Right_to_Protect_its_Collateral_Interest.aspx