Mortgage enforcement is something we do on a regular basis for institutional and private lenders. Governed by the Mortgages Act and the provisions contained in the mortgage , it is essential that mortgagees strictly enforce their rights. Difficulties arise when mortgagees are unsure of their rights and obligations in respect of the mortgaged premises. Issues arise such as possession of the mortgaged premises and the collection of the income stream during the borrowers default. . A mortgagee is entitled to make the most out of a property for the purpose of realizing amounts due to him including attorning the rental income from the property. Of course a mortgagee who is in possession can be held liable for the deterioration of the mortgaged premises where their is wilfull neglect. Being a mortgagee in possession has consequences which need to fully understood before rushing headlong into possession. It is well established that the mere collection of rental income will not subject a mortgagee to being a mortgagee in possession in commercial tenancies however In National Trust Co. v. Carleton Condominium Corp. No. 489,  O.J. No. 2062 (Gen. Div.), National Trust Co. collected rent not simply as agent for the owner, but as a mortgagee in the assertion of its rights against the defaulting mortgagor. The Court determined that this was sufficient to constitute National Trust Co. a mortgagee in possession. If If a mortgagee is in possession then liability for environmental contamination can be imposed as well as obligations under the rental housing protection statutes for payment of essential services.