Stop Power Of Sale Toronto

After a default, an Ontario lender must serve a notice of sale and then wait out a statutory redemption period before it can sell the property. During that window you retain the right to redeem, which means paying the arrears, the lender's legal and enforcement costs, and bringing the mortgage current.

The lender is not required to get the best possible price, only a commercially reasonable one. That is the core risk: a forced sale routinely returns less than an open-market sale, and every enforcement cost comes out of your equity first.

Because the clock is fixed, the useful question is not whether you can catch up out of cash flow. It is whether a new mortgage can be registered and funded before the redemption window closes.

A private first or second mortgage is arranged to cover the arrears, the existing lender's legal and administrative charges, any property tax arrears, and the closing costs of the new loan itself. Your lawyer pays every item directly on closing and the enforcement stops.

Private lenders in these files price on the equity and the exit plan. They expect a clear answer to one question: what happens in twelve months? Selling, refinancing back to an institutional lender, or a return to normal income all qualify as answers, and the plan matters as much as the numbers.

We will not quote a rate before reviewing the file, and nothing here is a commitment to lend. What we can do fast is tell you whether the current lending market will look at your situation and what your package is missing.

The notice of sale or demand letter, your current mortgage statement showing the arrears, a recent property tax bill, and any tax or judgment liens registered against the title.

Do not wait until the redemption period is nearly over. Registration, appraisal and lawyer time all take real days, and a file that arrives with a week left may simply be too late to fund.