Foreclosures in Canada and Power of Sales

Foreclosures Foreclosures in Canada and Power of Sales

Foreclosures in Canada and Power of SalesMost Canadians think foreclosures have not happened that much in Canada. In fact, most think that the sub-prime fiasco that the  United States has and is experiencing has not affected Canada. Let me tell you that that is not true.

Canadians are foreclosing at the highest rate in history

There are foreclosures all over the country that are affecting about 45-50,000 new homeowners per month. Which, if you think of the population of Canada, that is quite a lot.

 

What is a foreclosure in Canada?

A foreclosure is a legal action that a money-lender can take if a person who borrowed money using a mortgage stops paying back the mortgage. Once that happens, a process begins known as foreclosure or power of sale. This process differs from province to province.

What is Power of Sale in Canada?

Power of sale is used as a lenders primary recovery method in Newfoundland, New Brunswick, Prince Edward Island, and Ontario. This particular method was created to keep the recovery process out of the court system and created the ability to make it happen at a much quicker rate than a foreclosure. The Power of Sale process is utilized to get a homeowner out of a property in as little as 53 days.

When and where is the Foreclosure Process used in Canada?

Foreclosures in Canada and Power of SalesThe foreclosure process is used as the primary recovery method in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec. Foreclosure process is primarily a judicial process whereby each facet requires either a court application and filing, or actually being in front of a judge.

In Nova Scotia, the primary recovery process is called the Mortgage Foreclosure or Mortgage Foreclosure and Sale, but it is primarily considered a judicial process in which the court is involved throughout.

In Alberta and Manitoba, a foreclosure ordered from the court can only be requested after a mortgage property was offered for sale at a public auction, whereby it was advertised in the paper or posted in the clerk’s office at the courthouse, or was actually on the MLS and listed with a real estate agent.

The highest bid has to come in which is sufficient to extinguish the mortgage debt. If that has not happened then a foreclosure order from the court can be requested, and the lender can take over the property at that point.

In the foreclosure process and Power of Sale process, the key point for a real estate investor is the owner has the right of redemption.

What is right of redemption?

This means the owner can bring the mortgage back into good standing by paying off all arrears, interest, legal fees, etc. within a set time period. This is the time frame where there is an excellent opportunity for us. If we can have the owner contact us during this period, we can help them and help ourselves as well.

P.S. Take Action now to attend the eye-opening seminar and walk away with confidence, knowledge, and specific “action ideas” that can help you achieve your dreams and leave the rat race behind.

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Navtaj Chandhoke
www.CanadianWealthBuilders.com | www.preigCanada.com
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