A conveyance of mortgaged land by the mortgagor to the mortgagee extinguishes the mortgage. Upon default, the mortgagee proceeds against lot X first, the mortgagor. The property was listed for mortgagee auction. It was agreed to by United Overseas Bank (UOB), who was the mortgagee. Latec was the mortgagee of land owned by Hotel Terrigal. The mortgagee must keep that in mind. In this one, it was the Council that was the mortgagee.