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.

Preventing Foreclosure

Early Warning Signs

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Missing or late mortgage payments
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Using credit cards or loans for essential expenses
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Receiving collection calls or notices
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Depleting savings or retirement accounts
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Income reduction or job loss

Preventive Measures

Financial Management

Create a detailed budget
Track all expenses
Build an emergency fund
Prioritize mortgage payments

Communication

Contact your lender early
Keep detailed records
Respond to all notices promptly
Seek professional advice

Options to Consider

Selling Your Home: A Fast Solution to Avoid Foreclosure

Selling your home before foreclosure can help you protect your credit and potentially keep your equity. Here are your options:

Traditional Sale

✓ Get full market value
✓ More time to move
✓ Work with licensed realtor
✓ Professional marketing

Cash Buyer Sale

✓ Close in 7-14 days
✓ No repairs needed
✓ No realtor fees
✓ Guaranteed closing

Additional Selling Options

Short Sale

If you owe more than your home's worth, work with your lender to accept less than the full amount

Rent-to-Own

Generate immediate rental income while giving tenants the option to buy

Auction Sale

Quick sale through competitive bidding, best for high-demand areas

Get Professional Help Now

Connect with experts who can help you avoid foreclosure and protect your interests.

Selling Your Home: A Proactive Solution

Selling your home before foreclosure can be a strategic choice that offers several advantages:

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Maintain Control
You control the sale price and terms rather than facing a forced sale
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Protect Your Credit
Avoid the severe credit impact of foreclosure
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Potential Equity Recovery
Keep any equity you've built in the property
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Faster Resolution
Complete the process more quickly than foreclosure

Quick Sale Options

• Work with real estate agents specializing in urgent sales
• Consider cash buyers for faster closing
• Explore short sale options if underwater on mortgage
• List slightly below market value for quick offers

1. Mortgage Refinancing

Explore options to refinance your mortgage at a lower interest rate or extend the term to reduce monthly payments. Consider:

Rate negotiation with current lender
Shopping for better rates with other lenders
Extending amortization period
Converting to a variable rate mortgage

2. Payment Deferral or Modification

Temporary solutions for immediate relief:

Skip-a-payment programs
Interest-only payments
Temporary payment reduction
Payment schedule adjustment

3. Debt Consolidation

Strategies to manage overall debt:

Home equity line of credit (HELOC)
Debt consolidation loans
Credit counseling programs
Consumer proposal consideration

4. Property Sale Options

Last resort alternatives to foreclosure:

Traditional property sale
Short sale with lender approval
Deed in lieu of foreclosure
Rental or lease options

Where to Get Help

Financial Counseling

Contact Credit Counselling Canada for free financial advice and debt management plans.

Government Programs

Check CMHC programs for homeowner assistance and mortgage help.

Legal Assistance

Consult with a real estate lawyer or legal aid clinic for professional guidance.