In Canada, each and every province has its own foreclosure law. The main difference between the various provinces is the method through which the lender can recover the debt. There are two main methods being used:
Judicial sale is a sale conducted under the supervision and authority of the court, where a lender must apply to the court to get the court’s permission to sell the property.
Power of sale allows a lender to sell property without the involvement of the court. The lender has the right to sell the property from the mortgage document and/or provincial legislation which authorizes power if sale in that province
The foreclosure law in Alberta, BC, Manitoba, Nova Scotia, Quebec and Saskatchewan allows Judicial Sale while the foreclosure law in New Brunswick, NFLD/Labrador, Ontario, P.E.I. allows Power of Sale
There are many resources online that will provide you with an overview of forclosure law. My favourite is a booklet published by the Legal Services Society called “Can’t Pay Your Mortgage? What You Can Do If You’re Facing Foreclosure”
Understanding the law may help but taking action quickly is even more important. The sooner you act the better your chances are to stop the foreclosure and save your credit. The sooner you act, there more option you have. To get hep now, discuss your specific situation and the options available to you contact us today.