Final answer:
The surplus would be given to the mortgagor, not the mortgagee.
Step-by-step explanation:
The statement, 'The surplus would be given to the mortgagor. This action only allows the mortgagee to retrieve what they are entitled to, and no more,' is false.
In the context of mortgages, the mortgagor is the borrower who pledges their property as collateral, while the mortgagee is the lender who provides the loan. If there is excess money left after the mortgage debt is paid off, it will be returned to the mortgagor (borrower), not the mortgagee (lender).
This principle is known as the equity of redemption, which ensures that the borrower is entitled to any remaining funds if the property is sold for more than the outstanding mortgage balance.