'Q&A: Ontario Foreclosure Legal Issues'

Q&A: Ontario Foreclosure Legal Issues

By Blog Answers at 02/02/09 13:34

On 11/21/08 09:35, Farzana asked the following question:

attending real estate lawyer's meeting can you guide me what is the important legal issues faced in foreclosure in Ontario. any question i can ask the lawyer please let me know.

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Answer #1 On 02/02/09 13:25, ##PRclass-Elaine_7-Elaine (7) from Uruguay##PR answered:

Be familiar with power of sale.

As "power of sale" was initially developed in Ontario by lenders who wanted a faster way to dispose of property and recover debt you'll find that foreclosure proceedings in Ontario are quite speedy. More often than not the structures to carry out quick foreclosures through power of sale provisions are often laid out in the original mortgage documents themselves. This can allow lenders in Ontario to sell property after the borrower’s default (15 days notice) without having to resort to the courts.

If your lender's power of sale is included in your mortgage documents you have 35 days pay the amounts owing. If power of sale provisions are not specifically outlined in your mortgage papers then you have 45 days within which to redeem the mortgage. While statutory power of sale (where it is NOT included in mortgage papers) is very rare, the lender can still exercise power of sale as long as the borrower has defaulted for three months or more.

Once the redemption period expires and the borrower has failed to correct the default, the lender can sell the property. Under power of sale, the property can be sold by auction, private contract, or tender but guidelines have been put in place to ensure the property is seen by a large segment of potential buyers by listing it in multiple locations and ensuring the listing is up for the usual period of such properties.

As such when you meet with your lawyer you need to work relatively fast. Be informed, have all the necessary documents and share all relevant information with the lawyer. Everything you tell them during your meeting is subject to the attorney-client privilege so honesty is in your best interest. Let the lawyer decide what is or is not in your favor. It's much better for the lawyer to know the bad things up front, rather than be surprised later.

The lawyer may give you alternatives as to what you can do, and you should discuss the possible consequences of each option. Depending on how well prepared you are the lawyer may even be able to give you advice on how to proceed immediately. This could be especially important when time is of the essence.

Good Luck!

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How/where would I find a list of homes that have been or are soon to be forclosed on?

Hi I was just wondering i had a house that was forclosed on but i never recieved anything from the lenders! It has been almost 5yrs since this happend! I finnaly got ahold of them and the amount oweing on the house was $91,000 but after the sale of the house i still owe over $40,000? almost 50%.. also they went to court but the court they filed in was no where near where i lived it was a 4 - 5 hr drive away can they do this? I was never notified of the sale of the house the cost involved with the selling of the house. nor was i notified of the hering and where it was or when it was! I am trying to get this settled out because the full $91,000 + is still showing up on my equifax credit? I would appreciate an answer as to what i can do if i was not notified of the sale or hearing on the judgemnet or its location! also why the full amount is showing on the credit report aswell how can i determine a fair market value for the sale of the house!

Thank you!

Chris Mclaughlin

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