A Statement of Defense can be filed by a home owner that is trying to stop a power of sale or a foreclosure on their property. The legal process for filing the defense is fairly simple and can be done by the home owner. We strongly recommend that you call us before you file a statement of defense on your property.
On the positive side, the statement will gain the property owner some time to get a new mortgage or sell the house. On the negative side, there are some extremely high legal costs that occur when a statement of defense is filed. The property owner needs to be aware that all costs, including legal costs that will be charged back to the property in power of sale or foreclosure. The lender’s lawyer is required to respond to the statement of defense, which includes legal briefs and court appearances.
The cost of a response from a lawyer could be very high. We have seen a response cost as little as $15,000.00 up to as much as $70,000.00, remember that your equity is paying for the legal bill.
We do not recommend that or clients file a statement of defense without a clear plan and legal help. In almost every case in Ontario the lender’s lawyer will win the court challenge.
Before you file a Statement of Defense please call us to discuss all your options.