The lawyers at Vakili Law Group can assist lenders whose loans have gone into default.
When a borrower defaults under a mortgage, lenders have several options at their disposal to
enforce their rights under the mortgage. This area of law can be quite complex with strict
timelines to follow; therefore you would be well served by retaining an experienced mortgage
The three available options to enforce a mortgage that has gone into default are:
2) Judicial sale; and
3) Power of sale
Each remedy comes with its own advantages and must be carefully considered before one
decides which remedy to pursue. In our experience, the most common remedy is Power of Sale
under the Mortgages Act. When a mortgage has been in default for more than 15 days, the lender
has the right to issue a Notice of Sale. Under the Act the lender must clearly provide a detailed
outline of the mortgage terms and all amounts owed under the mortgage. Any penalties the
lender is seeking must also be in accordance with all applicable acts. Other than including the
material terms of the loan and the amount owed under the mortgage, the notice must also clearly
state that if the amount owed is not paid within the 35-day period, the lender has the right to sell
the property at their discretion.
Depending on whether the property is owner-occupied, tenanted, or vacant, the lender’s strategy
to obtain possession and sell the property will vary and an experienced mortgage enforcement
lawyer will be imperative in recovering the loan plus all out-of-pocket expenses incurred by the
Having an experienced mortgage enforcement lawyer guiding you through this process can
eliminate delay and even provide strategies that will assist in accelerating the process to recover
all amounts owing under the mortgage.
If you need assistance in recovering a mortgage that is currently in default, then feel free to
contact one of the lawyers at Vakili Law Group who can assist you with your matter.