Legal team equals more expenses, and they generally do not negotiate, unless it involves a full payment, and payment of legal fees.įoreclosure Solution #1: At this point you may be allowed a second mortgage to place behind the first one, to pay off any arrears, administrative and legal fees, and bring the mortgage back into good standing.īorrowers have the right to redeem their home equity at any time until the home is sold and closes. If they say that the matter has already been handed over to the legal team, then you may be in a bit of a trouble. Your first point of action may be to call your lender and ask them if you can just negotiate to pay your mortgage before the actual power of sale starts. It seems harsh, but that is the lender’s legal right. Maybe you switched jobs and needed to wait for new payroll to come in. A notice of sale is the first step towards the power of sale in Ontario.įifteen days is not a lot of time. If you have defaulted on your payment for longer than 15 days, the lender has the right to send you a notice of sale or notice of sale under mortgage. This is the most common type of foreclosure in Canada, and is the prefered process for Ontario.įirst, during a property foreclosure, the power of sale process will allow for you to potentially keep your home. The power of sale is a process that requires less legal involvement and more cooperation. Our goal is to provide you with some basic awareness of the options, your rights, and the process that you may now be facing. Bear in mind, this article is not legal advice and should not be read as such. Let’s take a look at both of these types of foreclosures, and then give you some creative solutions. You won’t be the one deciding which of these two scenarios will happen to you, but in Canada, power of sale is the lender’s first choice in Ontario, New Brunswick, Newfoundland and Labrador, and Prince Edward Island,and the judicial foreclosure is a process banks use to foreclose on a mortgages in British Columbia, Alberta, Quebec, Manitoba, Saskatchewan, and Nova Scotia Neither of these is ideal, but since the whole situation is not great, it’s important to know exactly what rights and remedies you have at your disposal. We know it hasn’t been easy lately, and we know this is not helping, but thousands of families across Canada are in a similar situation.īank foreclosures in Canada aren’t uncommon, but they are stressful So, you’re facing a bank foreclosure, what happens now?ĭepending where you are in Canada, one of these two options are more common: the power of sale and judicial foreclosure. It’s definitely one of the most stressful situations you could be dealing with: the bank has sent you a letter and they are saying they want to foreclose on your home.
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