Home Foreclosures in Canada: Complete Guide & Resources
Your comprehensive guide to navigating the foreclosure process, understanding your rights, and finding help.
Facing foreclosure? Learn about your options, including how to prevent foreclosure, protect your rights, and explore alternatives like selling your home.
Featured Foreclosure Listings
What is Foreclosure?
Learn about the legal process where a lender takes possession of a property due to default on mortgage payments.
Learn More →Warning Signs
Recognize early warning signs of financial distress and learn about preventive measures to avoid foreclosure.
Learn More →Your Legal Rights
Understand your rights as a homeowner and the legal protections available during the foreclosure process.
Learn More →Important Resources
Get immediate help with your foreclosure situation:
- • Credit Counselling Canada
Free financial counseling and debt management programs
- • Canada Mortgage and Housing Corporation (CMHC)
Government resources and assistance programs
- • Legal Aid Services
Access to legal assistance and representation
Frequently Asked Questions
What are the foreclosure laws in Quebec?
Quebec uses a unique hypothecary recourse system with a 60-day notice period. The process involves registration in the land registry and allows for voluntary property surrender or judicial sale.
How does Manitoba's foreclosure process differ?
Manitoba uses a Notice of Sale process with a 5-month redemption period. The province offers mediation through FMAC and requires registration with the Land Titles Office.
What happens to tenants during a foreclosure?
Tenants generally have the right to stay until their lease expires. New owners must honor existing leases, though specific rights vary by province.
What happens after receiving a Notice of Default?
After receiving a Notice of Default, you typically have 15-30 days to respond. This period allows you to either pay the outstanding amount, negotiate with your lender, or seek legal advice. Ignoring the notice will lead to formal foreclosure proceedings.
Can I stop a foreclosure once it starts?
Yes, you can stop a foreclosure by: paying the outstanding amount during the redemption period, negotiating a payment plan with your lender, selling the property, or filing for bankruptcy protection. The specific options available depend on your province and stage of foreclosure.
What are my options if I can't afford my mortgage payments?
Options include: refinancing your mortgage, requesting a payment deferral, selling the property, negotiating with your lender for modified terms, or seeking credit counseling. It's important to act quickly and communicate with your lender.
What is the difference between foreclosure and power of sale?
Foreclosure is a legal process where the lender takes full ownership of the property, while power of sale allows the lender to sell the property to recover the debt while returning any surplus to the homeowner.
How long do I have to catch up on missed payments?
The redemption period varies by province, typically ranging from 35 days to 6 months. During this time, you can pay the outstanding amount to stop the foreclosure process.
Can I sell my house during the foreclosure process?
Yes, in most cases you can sell your home during the foreclosure process, as long as the sale price covers the outstanding mortgage balance and any associated fees.
Will I lose all my home equity in a foreclosure?
Not necessarily. In a power of sale, any surplus after the mortgage debt and costs are paid must be returned to you. In a foreclosure, you may lose your equity unless you redeem the property.
How will foreclosure affect my credit score?
A foreclosure can significantly impact your credit score, typically remaining on your credit report for 6-7 years and making it difficult to obtain future mortgages or loans.