Can an Eviction Order be Stopped?

Can an Eviction Order be Stopped?

    All Ontario homeowners want to make their monthly mortgages and work diligently to eventually pay off the principal on their home. Homeownership comes with pride and a great deal of that pride resides in making sure the mortgage remains in good standing.

    There are times in life however when it becomes very difficult to pay all the household debts in addition to the monthly mortgage payments. This past year has caused an economic strain on Ontario homeowners as monthly income may have been reduced due to the ongoing pandemic.

    Although personal finances may be strained for many, the housing sector has had a very robust year throughout the pandemic. Forecasts by the Royal Bank of Canada for the first half of 2021 see no end in sight in appreciating property numbers as interest rates have remained extremely low and inventory remains tight relative to the number of buyers.

The number of properties sold in Ontario is projected to continue at the same rate well into 2021. In January 2021, Toronto saw a record number of house sales with 6,928 properties sold. This represents a 51% increase in housing sales compared to January 2020 according to the Canadian Housing Market Report 2021. The average house price appreciated an impressive 15% by January 2021. The average house price in Toronto is now $967,885.

What is An Eviction Order- Know Your Options

Those Ontario homeowners who want to profit from the real estate boom but are burdened by debt and have damaged credit may feel they have very few options. This becomes amplified if a power of sale or foreclosure process has been initiated on your property. It is critical that if you are under threat of being evicted from your property that you are familiar with avenues that may be open to you to stop the process before you lose possession of your valued home.

An Eviction Order is a final step in the default proceedings. The paperwork for eviction is prepared after a court has sent a Writ of Possession to the Sheriff’s office in the jurisdiction that the property is in. The property owner is given notice of the pending eviction (usually 2 weeks and the Notice of Eviction is sent from the sheriff’s office.) The Notice of Eviction will clearly state the time and date that the homeowner must vacate the property. If the homeowner still refuses, the Sheriff will come and physically remove the occupants from the property.

It is important to note that there are distinct steps that your lender must legally follow to eventually take possession of your property and for you to be legally evicted. This holds for both a power of sale and foreclosure. It is more than likely that your lender will initiate a power of sale if you are in mortgage arrears. 

Regardless of the method your lender chooses to deal with mortgage default, a power of sale will not require the permission of the courts to initiate and it takes less time to

complete. A foreclosure needs to be approved by the courts and can take much longer (up to a year). A lender must send a Notice of Sale to the homeowner, followed by a Statement of Claim, and give a reasonable Redemption Period for the homeowner to try to bring the mortgage in good standing.

If the arrears remain outstanding then the lender must apply to the court for a Writ of Possession (in foreclosure it is referred to as a Writ of Execution). The writ of possession is sent to the Sheriff’s office. If there is still no action taken by the homeowner the Sheriff will now prepare the paperwork for an eviction order. The Writ of possession gives the Sheriff the legal authority to enforce a pending eviction.

Ways to Stop an Eviction

    An Eviction can be stopped. There are methods to prevent being forced from your property that includes:

1.    Speaking to Your Lender- If there is still time left in the default proceedings then it is always recommended to try to negotiate with your lender to find ways to put the mortgage in good standing and meet the terms of your mortgage contract between you and your lender.

2.    Considering Filing a Statement of Defence or a Motion to delay the eviction- A homeowner is legally entitled to try to delay the eviction. This is a course of action that is certainly an option but it does represent a very costly option when factoring in legal fees. It may help to delay an imminent eviction but the cost may outweigh the benefits.

3.    Taking out a Private Equity Mortgage Loan- The banks will not be in a position to offer a home equity loan to pay off arrears due to damaged credit however there are well established private lenders in Ontario who can assess your property value, other assets, and existing equity in your house to offer a consolidation or home equity loan. Private loan mortgage options include a second mortgage, home equity line of credit, consolidation loan, bridge loan or even renegotiating the terms on your principal mortgage. All these mortgage loan options will enable you to pay off any arrears or legal expenses while enabling you to cover future mortgage payments. The interest rates associated with private mortgage loans will range from 7% to 10% with fees of 3% to 6% of the total cost of the mortgage loan.  

Mortgage Broker Store Can Help Stop an Eviction Order

    An Ontario homeowner should look at every option available to stop a pending eviction. At Mortgage Broker Store we have specialized knowledge in the process of Power of Sale and Foreclosure and the eviction process. 

We also have access to a network of experienced private lenders who can help negotiate private mortgage loan options that will help you put your mortgage in good standing while covering ongoing debt payments and future mortgage payments. Don’t hesitate to contact us at your convenience to take the steps to keep your home.