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Foreclosure is what happens when you can't pay your mortgage and the lender takes over owning your home. The lender then sells your home to pay off what you owe them. You have no control over how the home is sold and will be given notice to leave the property, sometimes even before it's sold.
If there is a shortfall after the bank forecloses, CMHC (Canada Mortgage and Housing Corporation) steps in, pays the bank, and then pursues the client for the remaining balance.
How many late payments you can make before a foreclosure. There is no set number of missed mortgage payments before foreclosure in Canada.
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.
The single biggest factor is the amount of equity in the property. This time can often be negotiated so call our foreclosure team today for help either speeding up or extending the redemption period. On average the redemption period is 3-6 months.