A practical, step-by-step playbook for what to do in the first 7 days, the first 30 days, and what changes at 90+. Free advisor call. No fees. No pressure.
Quick 15-minute call. We’ll lay out every option that fits your situation.
The earlier you act, the more options you keep. Most Canadians who fall behind freeze for 30-60 days — that’s when options narrow. Don’t do that.
Every letter from your lender, in date order. Photograph them. Highlight every date, deadline, and dollar amount.
Equifax and TransUnion both offer free reports. You need to see what else is on file before any conversation.
Free, government-accredited, no sales pitch. Directory at canada.ca. They can spot options you don’t know about.
Many real-estate lawyers in your province offer a free 30-minute consultation. Bring the mail.
Mortgage balance, monthly payment, months behind, property value (rough), other debts, monthly income. Show this to everyone you talk to.
One with a B-tier mortgage broker (refi angle). One with a private buyer or agent (sell angle). Both are free. Get oriented.
By the end of the week, one paragraph: what you’re doing, by when, with whom. Re-read it every morning.
Foreclosure isn’t one event — it’s a sequence. Each milestone narrows your choices.
| Stage | What’s happening | Options still open |
|---|---|---|
| 1 payment behind (Days 1-30) | Late fee, automated reminders, possibly a phone call. | All options. Easy to fix. |
| 2 payments behind (Days 30-60) | Formal demand letter. Lender flags account. | Refi still works. Sale on your timeline. Cure default. |
| 3 payments behind (Days 60-90) | Lender prepares to file. Some send a "Notice of Intent" letter. | Refi possible but harder. Sale advised. |
| 4+ payments / foreclosure filed | Statement of Claim, court hearings, attorney fees added. | Sale to cure. Bankruptcy. Refi limited. |
| Court order issued | Redemption period begins. Property listed for sale. | Redeem (pay in full) or lose property. |
| Sale completed | Property transferred. Deficiency may apply. | None remaining. |
Most Canadian lenders begin formal foreclosure or power-of-sale proceedings after 3 missed payments (roughly 90 days). Some move faster, especially with power of sale in Ontario, BC, and the Atlantic provinces. The earlier you act, the more options stay open.
One missed payment reported to the credit bureaus typically drops your score 50-100 points. Two missed payments compound. By three missed payments, your score will be significantly damaged for 6-7 years. Acting in the first 60 days matters — even a single missed-payment report can be negotiated off if the account becomes current.
Often yes, especially if you have equity (typically 25%+ of the home’s value). A and B tier banks will say no, but private lenders and mortgage investment corporations (MICs) regularly refinance distressed files. Rates are higher but the math frequently still works compared to losing the home.
Options narrow but they exist. A "short sale" (selling for less than the mortgage owed) is possible with lender approval. Bankruptcy or consumer proposal can pause foreclosure. We’ll walk through what makes sense for your specific numbers.
If the property is your principal residence, you generally don’t owe capital gains tax even if the lender forecloses. Investment property is more complex. Talk to an accountant before signing anything if the property is a rental.
Usually it’s the last option. Filing triggers an automatic stay that pauses foreclosure, but seriously damages credit for 6-7 years. For some situations (mortgage is one of many debts), it’s the right tool. A Licensed Insolvency Trustee can advise — first consultation is always free.
Fifteen minutes. No pitch. Honest assessment of what fits your situation — including options that don’t involve us.
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