Stop Power of sale.

When a real estate owner misses one or more mortgage payments, often referred to as mortgage arrears, including any other act of default, the bank or private mortgage lender can take legal action to enforce its security, which, if unsolved, can ultimately lead to the real estate sold via power of sale or foreclosure. The initial step usually entails the mortgage lender providing a demand letter to the borrowers, a document outlining the amount owed to the lender, including the balance of missed payments and default fees, along with a deadline. No sooner than 15 days after the act of default, the mortgage lender can deliver a written document known as a Notice of Sale to all parties with an interest, including spouses and guarantors. During this period, the real estate owner has 35 days to pay the defaulted amounts to stop the mortgage default, known as a redemption period. If the real estate owner can’t remedy the mortgage default, the lender can exercise their rights under a Power of Sale, including issuing a Statement of Claim through the courts. The real estate owner typically has 20 days to file a statement of defence, failing which the lender can then obtain Default Judgement and apply for a Writ of Seizure and Sale, Order for Possession and Writ of Possession, which can lead to a Sheriff evicting the real estate owners and the lender listing the property for sale. The sale proceeds, less existing mortgage balance(s) and closing costs are to the real estate owner. Lenders will typically pursue a Power of Sale in Ontario as the process is usually quicker and cost-friendlier than foreclosure proceedings.