![]() ![]() How long can I be pursued for a mortgage shortfall debt The. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs. Until the house is sold, you are liable for these costs, as well as legal and estate agents fees. Default happens after a specified period of non-payment, which is outlined in the terms of your loan. If you require legal assistance, please see a lawyer. Student loan default means you have failed to make payments on your student loans. Its content does not constitute legal advice and should not be relied upon by readers as such. Should there be equity in the property or proceeds remaining from a subsequent sale, the lender is under no obligation to account the borrower for the equity, or the proceeds.Ĭontact Robert Adourian, of Devry Smith Frank LLP, for experienced assistance with both commercial and residential real or 41 ![]() If the value of the asset is less than what is owed, the lender cannot pursue the borrower for the remainder. This process can only be prevented by the borrower paying the arrears and the lenders legal fees or by payment of the remaining balance of the defaulted loan in its entirety.įoreclosures is a legal proceeding initiated by the lender to obtain the full legal title to the asset outlined in the mortgage agreement. If the sale does not cover the balance of what is owed, the borrower is still liable for the remaining balance. If there is equity in the property, the remaining balance will go to the borrower after the mortgage balance and any other associated fees such as legal fees have been paid. The lender does have a legal obligation to sell the property at the fair market. The lender however, must give the borrower written notice by registered mail 45 days after default. This remedy, if you will, is by far the least complicated and permits the lender to recoup the balance remaining. Pursuant to Ontario’s Mortgage Act upon a mortgage default the lender is entitled to determine that the mortgaged property in question should be sold to a third party. ![]() That said, when a borrower defaults on their loan and from their obligations in the mortgage agreement, the lender has two possible remedies. A commitment in which you will be obligated to pay for a considerable amount of time – in the majority of cases anywhere between 10-30 years. A mortgage on your home will most likely be the most significant debt you will incur in your lifetime. ![]()
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