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When a borrower misses their third consecutive mortgage payment, the lender normally files a lawsuit with the court to start the foreclosure process (also known as going 90 days past due on their loan).
If the lender starts a foreclosure action Usually, this happens after you've missed three months of payments. But it can happen sooner. If there's a Supreme Court registry near where your home is located, the lender must start the proceedings there. You will receive a document called a petition for foreclosure.
How many late payments you can make before a foreclosure. There is no set number of missed mortgage payments before foreclosure in Canada.
Follow these simple steps to foreclose your home loan Inform the lender. Lenders have hundreds of loans running simultaneously. ... Get all the paperwork in order. ... Assessment of payments. ... Get a NOC. ... Remove Lien on the property. ... Retrieve security cheques. ... Get a New Encumbrance Certificate (EC) ... Retrieve the documents.
When a homeowner stops paying on a loan used to purchase a home, the home is deemed to be in foreclosure. What this ultimately means is that the ownership of the home switches from the homeowner to the bank or lender that provided the loan.