3.
22
monthly rental of $450.00.
Mrs. Remedios now finds herself entirely
unable to keep up her payments of interest on the
Government's mortgage.
She recently asked the Government to take
over the premises on Inland Lot No.2237 in satisfaction of the mortgage debt, but in view of the outstanding first
and second mortgages totalling $57,000, of the small demand
for houses at such high rentals and also of the unsuitability of the premises for the direct use of the
Government, it was not considered desirable to accept the
offer.
4.
The premises Inland Lot No.2237 are now
valued by the Valuations and Resumptions Officer at $62,500 and the premises Section L. of Kowloon Inland Lot
No.573 at $11,000, leaving margins above the mortgages
(other than the Government mortgages) of $5,500 and $3,200
respectively.
5.
It will be seen from the foregoing that if
the premises Inland Lot No.2237 were now sold Mrs.Remedios
would sustain a loss of approximately $40,000 on her
initial outlay and the Government would not recover a fifth
of its mortgage moneys.
I am satisfied that Mrs. Remedios has not
the means wherewith to repay any part of the capital or to
pay the interest accruing from time to time.
I am reluctant to adopt the course of
enforcing the collateral security as the Government would
thereby only recover approximately an eighth of its
capital at the cost of depriving Mrs. Remedios of her only
valuable asset, the house in which she lives.
There is
moreover