The Canadian process that related to defaulted mortgages is different from the US; and the term foreclosure is not used here at most of the time. The term Power of sale is a known term in the real estate industry. Let's see how the process of power of sale works.
Once a mortgage is 15 days in default, the lender issues a notice of sale to the mortgagor/Owner. This notice of sale contains a redemption date which is 35 days after the issuance of that document, coupled with one day up front to issue the document and one day a the end, for a total of 37 days, at which time the mortgagee (lender) must sit and wait until the expiration of that said redemption period.
Upon the expiry of the redemption period, the mortgagee (lender) may issue a statement of claim for debt of possession with the courts. (This is not to own the property, but to be able to sell it or get it sold, in order to be able to capture the debt that is owing.)
The defendant then has 20 days at that point to file a statement of defense with the court. This claim can be served personally to an adult member at the household where the default happened, but it must be followed up by a mailed copy addressed to the defendant. So the period for filing a defense could be extended an additional 5 day, so this could be a 25-day process while the lender sits and waits.
If the defendant does file a notice of intent to defend, this period can be extended up to 10 days. If the defendant fails to file a statement of defense, the plaintiff (lender or mortgagee) signs a default judgment with the court at which point a motion record is then prepared to obtain order for leave to issue a writ of possession.
The defendant is ordered to leave the property, and writ of possession (right to possess the property) is issued to that lender. If that writ of possession is issued with the court, it is also filed with the sheriff, also known as a bailiff or enforcement officer, in the jurisdiction where the property is located. The sheriff will then arrange for the eviction.
Once a mortgage is 15 days in default, the lender issues a notice of sale to the mortgagor/Owner. This notice of sale contains a redemption date which is 35 days after the issuance of that document, coupled with one day up front to issue the document and one day a the end, for a total of 37 days, at which time the mortgagee (lender) must sit and wait until the expiration of that said redemption period.
Upon the expiry of the redemption period, the mortgagee (lender) may issue a statement of claim for debt of possession with the courts. (This is not to own the property, but to be able to sell it or get it sold, in order to be able to capture the debt that is owing.)
The defendant then has 20 days at that point to file a statement of defense with the court. This claim can be served personally to an adult member at the household where the default happened, but it must be followed up by a mailed copy addressed to the defendant. So the period for filing a defense could be extended an additional 5 day, so this could be a 25-day process while the lender sits and waits.
If the defendant does file a notice of intent to defend, this period can be extended up to 10 days. If the defendant fails to file a statement of defense, the plaintiff (lender or mortgagee) signs a default judgment with the court at which point a motion record is then prepared to obtain order for leave to issue a writ of possession.
The defendant is ordered to leave the property, and writ of possession (right to possess the property) is issued to that lender. If that writ of possession is issued with the court, it is also filed with the sheriff, also known as a bailiff or enforcement officer, in the jurisdiction where the property is located. The sheriff will then arrange for the eviction.
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