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The Procedure for Foreclosure in Canada
• First stage:
– When the owner of the property misses or fails to payback the amount
of loan. Missing a single payment would not result in foreclosure but if
several paybacks are missed then it is an actionable situation.
• Second stage:
– The mortgagee sends a public notice through court, this notice is
submitted to get the money back in a legal manner. This is a notice for
the homeowner that the lender wants his money back and the property
can be foreclosed.
• Third Stage:
– A grace period is given to the homeowner and this period is called pre-
foreclosure. In this duration, the mortgagee and mortgagor can draft a
way out of this situation.
• Fourth stage:
– If the period of notice is over and the payment is not redeemed then a
date is set for the auction of the property foreclosure in Canada. And
the property is sold to the bidder with the highest bid.