Home Rent to Own | Power of Sale/Foreclosure | Credit Management Homeownership Re-Engineering - How You Can Save Yo - Page 8

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.