Best Foreclosure Lawyers in Pickering

About Foreclosure Law in Pickering, Canada

Foreclosure is a legal process through which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments, typically by forcing the sale of the asset used as collateral for the loan—most often a home. In Pickering, Ontario, the foreclosure process is less common than "power of sale," but both legal remedies are available. Understanding the distinctions and the process is crucial for homeowners facing financial difficulties and for those looking to purchase foreclosed properties.

Why You May Need a Lawyer

There are several scenarios in which seeking legal assistance during the foreclosure process in Pickering is advisable:

• Falling Behind on Mortgage Payments: If you are unable to keep up with your mortgage and have received notice of default, a lawyer can help you understand your rights and explore options such as mortgage refinancing, loan modification, or negotiating a repayment plan.
• Facing Power of Sale or Foreclosure Proceedings: Legal representation is crucial when a lender initiates action to repossess your home or property. A lawyer can help ensure that procedures are followed properly and advocate on your behalf.
• Disputes Over Mortgage Terms: If there is a disagreement with your lender about the mortgage’s terms, payment calculations, or default status, legal counsel can help clarify and resolve such issues.
• Purchasing a Foreclosed Property: Buyers can also benefit from legal advice to ensure that all legal and financial aspects of purchasing a foreclosed property are handled properly.
• Bankruptcy Inquiries: If you are considering bankruptcy as an alternative to foreclosure, a lawyer can explain how these processes interact under Canadian law.

Local Laws Overview

While the foreclosure process in Canada often refers to both foreclosure and power of sale, in Ontario—including Pickering—the power of sale process is more prevalent. These are some key legal considerations:

• Power of Sale: This is a faster, less costly process for lenders where the property can be sold without court involvement, but lenders must follow the rules set out in the Ontario Mortgages Act, which requires proper notice and procedures.
• Foreclosure: This formal process involves a court order, whereby the lender takes exclusive title to the property, extinguishing all rights of redemption by the borrower.
• Notice Requirements: Lenders must provide written notice, and there are stipulated timelines between notice and sale or foreclosure action.
• Right of Redemption: Homeowners generally have a limited period to pay off the arrears and reinstate their mortgage before the property is sold or the foreclosure is finalized.
• Surplus Funds: If a property is sold for more than the debt owed (including fees), the surplus is returned to the borrower.

Frequently Asked Questions

What is the difference between foreclosure and power of sale?

In Ontario, "power of sale" allows lenders to sell the property without court involvement (as long as procedures are followed), whereas "foreclosure" requires a court order and transfers property ownership to the lender with no further obligation to the borrower.

How much notice does a lender have to give before starting a foreclosure or power of sale?

Lenders are required to provide written notice (usually a Notice of Sale Under Mortgage) 35 days before commencing the power of sale process if the borrower is in default.

Can I stop a foreclosure or power of sale?

Yes. If you pay all the outstanding arrears (including costs and interest) before the sale or final court order, you can typically stop the process and retain your home.

Can I still live in my house during the foreclosure process?

Generally, you can remain in your home during the process. However, you may be required to vacate once the property is sold or a court order for foreclosure is granted.

What happens to the money if my home is sold for more than I owe?

Any surplus funds remaining after your mortgage debt and related costs are paid must be returned to you.

What should I do if I receive notice of default?

Contact your lender and consider seeking legal advice immediately to understand your options and protect your rights.

Can I negotiate with my lender after receiving a notice of default?

Yes. Many lenders are open to negotiation, such as repayment plans or loan modifications, especially if you seek help early.

Does bankruptcy stop foreclosure or power of sale?

Filing for bankruptcy may temporarily halt proceedings, but it is a complex area that requires advice from a bankruptcy or foreclosure lawyer.

Do I need to go to court during a power of sale?

Power of sale typically does not involve court proceedings, but if you wish to challenge the process, court involvement may be necessary.

How can a lawyer help me if I am facing foreclosure?

A lawyer can review your mortgage documents, ensure legal procedures are followed, negotiate on your behalf, represent you in court if necessary, and help you understand all your legal options.

Additional Resources

Here are some helpful organizations and resources for those facing foreclosure in Pickering, Ontario:

• Ontario Ministry of the Attorney General: Offers information regarding homeowner rights and legal processes.
• Community Legal Clinics: These can offer free or low-cost legal advice for those who qualify.
• Durham Community Legal Clinic: Serves residents of Pickering and surrounding areas with legal information and assistance.
• Canadian Bankers Association: Provides educational materials on home ownership and mortgage responsibilities.
• Licensed Insolvency Trustees: Can provide information and guidance for those considering bankruptcy or other debt solutions.

Next Steps

If you are facing foreclosure or power of sale in Pickering, it is important to act quickly to preserve your options and rights. Here are some recommended next steps:

• Consult a Lawyer: Seek professional legal advice as soon as possible to assess your situation and develop a plan.
• Review Your Documents: Gather all mortgage statements, notices, and correspondence from your lender to provide your lawyer with the necessary information.
• Contact Your Lender: Open lines of communication with your lender to discuss potential solutions before the process progresses further.
• Explore Alternative Options: Consider loan modification, refinancing, or selling the property voluntarily before any legal action is finalized.
• Utilize Community Resources: If eligible, reach out to community legal clinics or government agencies for additional support and guidance.