18 Questions
What is the most common remedy used by lenders in Ontario when a borrower defaults on their mortgage obligations?
Power of Sale process
Which act outlines the process that must be followed under a Power of Sale in Ontario?
Mortgages Act
How long after a borrower defaults on their mortgage payment can a lender begin the Power of Sale process?
15 days
What happens during the Power of Sale process?
The lender takes possession and sells the property
How does a Foreclosure differ from a Power of Sale?
In Foreclosure, the borrower's rights to the property are terminated
Which provinces in Canada currently use a Power of Sale process?
Newfoundland and Labrador, New Brunswick, Prince Edward Island, and Ontario
How are the proceeds of a sale under a Power of Sale distributed?
Payment to the mortgagor
What is the first step most lenders take to recover monies from a defaulting borrower, other than a Power of Sale or foreclosure?
Sending a letter advising of the default
When does a Power of Sale in Ontario typically commence after a default?
15 days after default
Who are additional encumbrancers mentioned in the text?
Mortgage holders
In what order are rental deposits prioritized in the distribution of proceeds under a Power of Sale?
Final priority
What happens to any leftover money after settling all costs and payments in a Power of Sale?
It is paid to the mortgagor
What additional fees may the Lender require the Borrower to pay?
NSF fee and administrative fee
What is a Demand Letter used for in the context of borrowing?
To demand the payment of the outstanding amount
What does the Lender proceed with if neither the Demand Letter nor other remedies are successful?
Power of Sale process
What is the main difference between a judicial sale and a foreclosure?
Courts handle the sale in a judicial sale
In which provinces is the foreclosure process used?
Alberta, British Columbia, Manitoba, Nova Scotia, Quebec, and Saskatchewan
What is a Quit Claim in the context of borrowing?
Transfer of ownership to the lender in exchange for liability release
Test your knowledge about borrower defaults, lender remedies, and the Power of Sale process in Ontario. Learn about the Mortgages Act that outlines the Power of Sale process and the timeframe involved in such situations.
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