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.

Canadian Foreclosure Guide - Help With Home Foreclosure

Pre-Foreclosure Stage

The foreclosure process typically begins when a homeowner misses multiple mortgage payments. Here's what happens:

Initial missed payment triggers automated payment reminders
After 15 days: Lender makes first contact attempt
After 30 days: Formal written warning issued
After 60 days: Notice of Default preparation begins
After 90 days: Legal proceedings may commence
Grace period varies by province and lender (typically 30-90 days)

Types of Foreclosure Proceedings

Judicial Foreclosure

Court-supervised process where the lender must obtain a court order. Common in most provinces.

Requires court approval at each major step
Typically takes 6-12 months
Provides more protections for homeowners

Power of Sale

Faster process common in Ontario and Maritime provinces.

Can be completed in 2-4 months
Less court involvement
Stricter notice requirements

Territory-Specific Information

Yukon, Northwest Territories, and Nunavut

Federal land title systems
Modified provincial procedures
Special considerations for indigenous lands
Extended notice periods due to remote locations

Legal Proceedings

The formal foreclosure process involves several legal steps:

Statement of Claim filed by the lender
Homeowner has 20-30 days to file a Statement of Defence
Court proceedings and potential judgment
Redemption period (length varies by province)

Provincial Variations

Foreclosure laws and procedures vary by province:

Ontario

Power of Sale process more common
Shorter redemption periods
45-day notice period required
Right to reinstate mortgage

British Columbia

Petition of Foreclosure required
Typically 6-month redemption period
Court-ordered sale process
Strict notice requirements

Alberta

Judicial foreclosure only
6-month redemption period
Deficiency judgments restricted
Mandatory mediation program

Key Timeframes to Remember

Notice of Default: 15-30 days after missed payment

Response Period: 20-30 days to respond to Statement of Claim

Redemption Period: 3-6 months (varies by province)

The Foreclosure Process in Canada