The mortgagee usually enters a mortgage transaction with the intention of getting back the principal sum he lends, with some interest on it. The essence of the property used as security is not to be sold, but to compel the mortgagor to pay back the loan and the interest on it.

However, where the mortgagor does not pay the loan on the scheduled date, he is said to have defaulted in payment and the mortgagee is empowered to demand for repayment of the loan advanced. In the event that the mortgagor, for whatever reason, fails to pay, the lender is well within his rights to sell the mortgage property.

However, before the mortgagee can sell the property, the right of sale must be exercisable.

When the right of sale arises (upon default in payment), the mortgagee is not yet empowered to sell the property until the right of sale has become exercisable.

The right of sales is exercisable in any of the circumstances below:

1. Where the Mortgagor owes an outstanding interest of two months or more. This means that apart from the principal sum which is not paid on the due date, the mortgagor has also failed to pay interest on the loan for two months.
2. Where the mortgagor breaches any of the terms of the mortgage or a provision of any law guiding mortgage transactions in Nigeria.
3. Where the mortgagee has sent a notice requesting for payment of the mortgage sum to the mortgagor, and the mortgagor fails to pay the money three months after the notice was sent.

It should be said that the three conditions above are disjunctive. This means that for the right of sale to have become exercisable, any of the three circumstances might have occurred.

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