Avoiding Foreclosure and What You Need To Know!
In Canada, the two main ways a lender can recover a mortgage debt after a borrower defaults is by Judicial sale or power of sale. A Judicial sale is a sale conducted with court approval and jurisdiction. The lender must apply to the court to get the court’s permission to sell the property. A power of sale allows a lender to sell property without court approval. The lender has the right to sell the property under the mortgage document and/or provincial laws authorizing power of sale for each province.
Power of sale is used as the lender’s primary method of recovery in Newfoundland, New Brunswick, Prince Edward Island, and Ontario. Judicial sale is the primary debt recovery method in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec. In Nova Scotia, the primary recovery process is called “Mortgage Foreclosure” or “Mortgage Foreclosure and Sale,” but is conside red a judicial process, as the court must approve the sale.
However, in BC and throughout Canada, homeowners do have options to stop the foreclosure proceedings. Here are some common methods:
These are the most commonly used methods to stop the foreclosure process in BC and Canada. I suggest you consult with an expert to help you choose the best method for your financial situation and goals.
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