Best Foreclosure Lawyers in Etobicoke

About Foreclosure Law in Etobicoke, Canada

Foreclosure is a legal process by which a lender, usually a bank or mortgage company, seeks to recover the balance of a loan from a borrower who has stopped making payments. In Etobicoke, which is part of Toronto in Ontario, foreclosures typically follow provincial laws set out in Ontario. However, in most of Ontario, including Etobicoke, "power of sale" is more common than traditional foreclosure. Both involve transferring the ownership of the property to settle unpaid debts, but there are differences in terms of procedure and timeline. Understanding these legal processes is crucial if you are facing financial difficulties that may result in property loss.

Why You May Need a Lawyer

Dealing with foreclosure can be complex and stressful. Here are some common situations where consulting a lawyer is highly recommended:

• You have received notice of default or a foreclosure statement from your lender.
• You are struggling to keep up with mortgage payments and want to understand your options.
• You believe there has been a mistake in the calculations of your arrears or charges.
• You want to negotiate new terms or a settlement with your lender.
• You wish to delay or challenge the foreclosure process in court.
• Your property is being sold under a power of sale and you want to protect your rights.
• You want advice on bankruptcy or other debt management solutions.

Local Laws Overview

In Etobicoke, foreclosure proceedings are governed by Ontario's Mortgages Act and related statutes. While the term "foreclosure" is sometimes used interchangeably with "power of sale," the latter is the most prevalent method used by lenders in Ontario due to its faster process. Key aspects include:

• Notice Requirements: Lenders must give written notice before initiating foreclosure or power of sale proceedings. This includes time to rectify the missed payments.
• Redemption Period: Borrowers typically have a period to "redeem" the mortgage by paying arrears and costs to stop the legal action before the sale.
• Sale of Property: Under power of sale, the lender can sell the property, usually at market value, and must use any excess proceeds to pay the borrower after satisfying the debt and associated costs.
• Deficiency Judgments: If the sale doesn't cover the outstanding loan and costs, the lender can pursue the borrower for the remaining balance.
• Court Involvement: Foreclosure (as opposed to power of sale) requires a court order, is less common, and usually only pursued if the lender wants to keep the property.

Frequently Asked Questions

What is the difference between foreclosure and power of sale?

Foreclosure involves a court order to transfer the property to the lender, wiping out the borrower's interest. Power of sale allows the lender to sell the property without court involvement, and any surplus after debts and costs goes to the homeowner. Power of sale is more common in Ontario.

How much notice will I receive before foreclosure or power of sale starts?

Lenders must provide you with written notice—usually at least 35 days—after you fall into default. This gives you time to remedy the default or seek legal advice.

Can I stop a foreclosure or power of sale process?

Yes, if you pay the arrears (missed payments and costs) before the property is sold, you can often halt the process. It's important to act quickly and seek legal advice as timelines can be tight.

Will I lose my home immediately after notice is given?

No, the process involves multiple steps, including notice periods and sales procedures. You typically have at least several weeks, if not months, to resolve the situation or make other arrangements.

What happens if my property is sold for more than I owe?

Any surplus funds (after paying the mortgage, accrued interest, and sale costs) must be returned to you, the former homeowner.

What if the sale doesn’t cover my entire debt?

If there is a shortfall, the lender can seek a deficiency judgment against you. This means you would still owe the remaining balance.

Can I negotiate with my lender during the process?

Yes, many lenders are open to settlement or repayment arrangements if you communicate early. A lawyer can help negotiate on your behalf.

How long does the foreclosure or power of sale process take?

A power of sale can take as little as a few months from default to sale, but timelines vary. Court-ordered foreclosures may take longer.

Do I need to leave the property before it's sold?

No, you are generally allowed to stay until the property is legally sold and title is transferred. However, after the sale, you may have to vacate promptly.

Does bankruptcy stop foreclosure?

Filing for bankruptcy may temporarily halt legal action, but it does not automatically prevent foreclosure or power of sale in the long run. Seek legal advice to understand your options or negotiate a solution.

Additional Resources

If you need more information or assistance, consider these resources:

• Ontario Ministry of the Attorney General: Offers information on mortgages and the legal process for foreclosure and power of sale in Ontario.
• Canadian Bankers Association: Provides guidance for homeowners facing mortgage issues.
• Credit Counselling Society: A non-profit offering debt solutions and financial counselling.
• Community Legal Clinics: Many local clinics offer free or low-cost legal support for Etobicoke residents.
• Law Society of Ontario – Lawyer Referral Service: Helps connect you with qualified lawyers for a consultation.

Next Steps

If you are facing foreclosure or have received a notice from your lender, act quickly:

• Gather all relevant documents, including your mortgage agreement, letters from the lender, and payment records.
• Contact a lawyer experienced in real estate or foreclosure law as soon as possible.
• Prepare a list of questions and concerns to discuss with your legal adviser.
• Explore all your options, including selling your home, negotiating with your lender, or considering debt counselling.
• Stay informed and proactive throughout the process to protect your interests and minimize financial loss.