Difference between revisions of "Mortgages and Foreclosure"

A plain reading of most mortgages appears to give mortgage lenders a frightening list of remedies against the borrower when there is a default. Older mortgage clauses spoke of the right to take possession of the land, to sell the land by private auction, to appoint a receiver, or to “take whatever action is necessary to take, recover, and keep possession of the land”. In fact, in most instances, mortgage lenders are restricted, for both practical and legal reasons, in taking foreclosure proceedings against the borrower.

'''Foreclosure''' is the most common way for a mortgage lender to enforce its rights under a mortgage that is in default. Historically, foreclosure was the legal process by which the lender closed off the right of the borrower to get the title back, back when mortgaging meant there was an actual transfer of the property to the lender until the mortgage was completely paid. Under the present [http://canlii.ca/t/8456 ''Land Title Act''], there is not an actual transfer of the property to the lender, but the remedy remains essentially the same process: the lender goes to court to get the property or to get the property sold in order to recover the money lent.