Best Foreclosure Lawyers in Markham

About Foreclosure Law in Markham, Canada

Foreclosure is a legal process through which a lender takes possession of a property when a borrower defaults on their mortgage payments. In Markham, Ontario (Canada), the foreclosure process is less common than in some other countries, such as the United States. In Ontario, lenders primarily use a procedure called "power of sale," which allows them to sell the property to recover the outstanding mortgage. However, understanding foreclosure in the local context is crucial for homeowners and lenders alike. This area of law can be complex, involving contractual terms, statutory regulations, court procedures, and potential remedies for both lenders and borrowers.

Why You May Need a Lawyer

Individuals or businesses may require legal assistance with foreclosure matters in Markham for several reasons. Common situations where legal help is advisable include:

• Receiving a notice of default or power of sale and needing to understand your rights and options.
• Unsure about the foreclosure or power of sale process and possible defences against it.
• Facing wrongful or accelerated foreclosure due to a lender's error or miscommunication.
• Wanting to negotiate with lenders for alternative solutions, such as refinancing or a repayment plan.
• Need to ensure all notices and legal documents are properly served and reviewed.
• Protecting your equity in the property and ensuring a fair sale process.
• Responding to legal actions, such as a statement of claim or court summons.

Because of the complexity and significant financial consequences involved, legal advice is strongly recommended for anyone facing foreclosure in Markham.

Local Laws Overview

Foreclosure in Markham is governed under Ontario law, primarily through the Mortgage Act and related statutes. The dominant process is "power of sale," which tends to be faster and less expensive than full foreclosure actions. Some key aspects of the local laws include:

• Lenders generally must wait at least 15 days after a missed payment before issuing a Notice of Sale under Mortgage.
• The notice must provide borrowers at least 35 days to pay the outstanding amount ("redemption period") before a sale can occur.
• If the outstanding balance is paid, the foreclosure or power of sale is halted and the borrower retains the property.
• Lenders are required to follow strict procedures to protect borrowers’ rights, including proper notice and fair market value sales.
• Should the sale price exceed the mortgage debt and expenses, the surplus funds must be returned to the borrower.
• A lender may seek a deficiency judgement if the sale proceeds do not fully cover the outstanding mortgage (subject to limitations).
• True foreclosure, where the lender takes absolute title to the property without a sale, is rare but technically possible in Ontario via court order.

It's important to note that each case can involve unique details and timelines depending on the specific mortgage contract and circumstances.

Frequently Asked Questions

What is the difference between foreclosure and power of sale in Markham?

In Ontario, including Markham, "power of sale" is the typical method by which lenders recover debt, allowing the property to be sold without taking full ownership. "Foreclosure" means the lender obtains the title to the property through a court order and the borrower loses all rights. Power of sale is faster and more common.

How much notice must a lender give before selling my home?

A lender must serve a Notice of Sale that provides at least 35 days (after a 15-day default period) for the borrower to pay the arrears and stop the power of sale process.

Can I stop the foreclosure or power of sale process?

Yes. If you pay the outstanding arrears, including costs and interest, within the specified period in the notice, you can stop the process and keep your property.

Will I lose all the equity in my home if it is sold?

No. If your property is sold for more than the outstanding mortgage and related costs, the excess funds (surplus) are returned to you.

Do I have to move out immediately after receiving notice?

No. You do not have to move out until the property has been legally transferred to a new owner. This usually occurs only after the sale process is complete.

Can a lender sue me for any remaining debt after the sale?

Possibly. If the sale proceeds do not fully pay off the debt and costs, the lender can seek a deficiency judgment against you, except in some situations involving high-ratio insured mortgages.

What are my options if I cannot pay the arrears?

Options may include selling the property yourself, negotiating a short sale, arranging a private refinance, or working with a lawyer to explore alternatives such as bankruptcy or consumer proposals.

Do I need to go to court during the foreclosure or power of sale?

Most power of sale proceedings in Ontario take place without court involvement. Foreclosure, however, requires a court order. You may need to attend court if you wish to contest the power of sale or challenge the lender’s actions.

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

The timeline can range from a few months to over a year, depending on the promptness of the lender’s actions, the borrower's response, and the availability of buyers.

Should I hire a lawyer if I am facing foreclosure?

Yes. A lawyer can help you understand your rights, negotiate with lenders, ensure all legal procedures are followed, and represent your interests in court if necessary.

Additional Resources

If you are dealing with foreclosure or power of sale in Markham, consider reaching out to the following resources for assistance and information:

• Ontario Ministry of the Attorney General: Provides general legal information and resources about property law and mortgage enforcement.
• Legal Aid Ontario: May offer legal support or referrals if you meet financial eligibility requirements.
• Law Society of Ontario: Offers a lawyer referral service to find a qualified real estate lawyer in your area.
• Community Legal Clinics: Some clinics assist with housing or debt issues for eligible residents.
• Financial Consumer Agency of Canada (FCAC): Information and tools about mortgages and resolving mortgage-related complaints.

Next Steps

If you are facing foreclosure or power of sale in Markham:

• Read all communications from your lender carefully and keep copies for your records.
• Act quickly to seek legal advice—delays can limit your options.
• Contact a qualified real estate lawyer who understands Ontario foreclosure and power of sale laws.
• Gather all documents related to your mortgage, notices from the lender, and any correspondence.
• Consider speaking with a financial adviser to fully understand your options for repayment or alternatives, such as refinancing or selling your property.
• If eligible, reach out to local legal clinics or Legal Aid Ontario for assistance.
• Review your credit report and track your financial situation to prepare for any next steps.

Taking prompt and informed action with professional guidance is the best way to protect your interests during this challenging process.