Foreclosures in Toronto

If you property is in the foreclosure process we advise you to contact the lender or the lender’s lawyer to try and stop the foreclosure. You can also contact one of our mortgage agents to advise you on the various options that you have regarding your mortgage.

In Toronto foreclosures are not as common as “power of sales”, the two actions have different legal procedures. There are number reasons why most lenders do not choose foreclosures in Toronto.

1.       Most lenders do not choose foreclosures in Toronto because of the extensive involvement of the court system in the process. Lenders must ask the court to order the property be sold and the court will oversee the entire sale process. This means that foreclosures Toronto requires extensive knowledge of the legal system on the part of the lender. In contrast the “power of sale” requires very little legal expertise and the court system has very little involvement.

2.       The Toronto foreclosures process is started with a lawsuit which is sent to the borrower and any other persons on title to the property. The power of sale process is started by sending a letter to the borrower notifying them that they are in default of the terms of the mortgage. The Toronto foreclosures process will take longer to complete because of the additional burden of documentation required by the courts. The “power of sale” process only requires notice to be sent; this is much faster, requires no court involvement and is cheaper.

3.       Foreclosures Toronto can take much longer to complete than a power of sale. The power of sale process can be completed in as little as 45 days. Foreclosures in Toronto can take as long as 9 months to complete.

4.       Lenders also have another reason to choose a power of sale over Toronto foreclosures when it comes to suing the borrowers for any short fall in the sale of the property. With foreclosures in Toronto the lender must sue for any short fall in the initial court action. The power of sale process allows the lenders to sue after the property is sold. This method reduces some of the initial legal costs but the borrower could be forced to pay any short fall further down the road.

Most lenders do not use the Toronto foreclosures process because of the cost and the time required to remove the homeowner. Foreclosures Toronto also increase the level of risk related to the mortgage, a homeowner may choose not to repair or maintain a home during the 9 month Toronto foreclosures process. In addition foreclosures in Toronto can take so long to sell that most lenders would need to charge a higher interest rate or lower the loan to value ratio to compensate for the additional risk, neither of these actions are in the best interest of the borrower.

If you are being sued for Toronto foreclosures you can talk to one of our specialized mortgage agents who can help you stop the foreclosure process. Call us now for your free consultation.