Last month, our second bulletin dealt with the types of remedies that are available to a lender in Ontario when there has been a default under the mortgage that has not been satisfactorily resolved following notice by the lender. Some of these remedies can be used in conjunction with others, but this bulletin of the mortgage enforcement series takes a closer look at the advantages and disadvantages of the two mutually exclusive remedies - foreclosure and power of sale. Foreclosure and power of sale are two very different remedies that have some important legal and practical differences between them.
(Please note that these bulletins are drafted from an Ontario law perspective. We would be pleased to discuss any mortgage enforcement questions you might have for the other Canadian provinces.)
B. PROS AND CONS OF FORECLOSURE AND POWER OF SALE