Mortgage Enforcement

When a borrower defaults on a mortgage, lenders require experienced legal counsel to enforce their security efficiently and effectively. Silver Crest Law acts for institutional and private lenders in mortgage enforcement proceedings across Ontario. With Shreyas's dual qualification as a lawyer and licensed Mortgage Agent, we bring a uniquely informed perspective to lender-side enforcement.

Power of Sale

Power of sale is the most common and efficient method of mortgage enforcement in Ontario, governed by the Mortgages Act. We manage the complete power of sale process from default through to distribution of proceeds, including:

• Reviewing and confirming validity of mortgage documentation and registration
• Confirming priority of the mortgage against other encumbrances
• Drafting and serving Notice of Sale under Mortgage in compliance with the Mortgages Act
• Calculating and advising on the redemption period
• Managing the listing and sale process in coordination with real estate agents
• Reviewing and accepting offers on behalf of the mortgagee
• Closing the power of sale transaction and reporting to the lender
• Distributing sale proceeds in order of priority
• Pursuing deficiency claims against the mortgagor where the proceeds are insufficient
• Handling surplus funds claims by junior encumbrancers or the mortgagor

Foreclosure

In circumstances where foreclosure is preferable — typically where the property has little or no equity — we pursue the court-supervised process of extinguishing the mortgagor's equity of redemption and vesting title in the lender. We advise lenders on when foreclosure is the appropriate remedy as compared to power of sale.

Judicial Sale

Where court oversight is necessary or the circumstances of the property require it, we pursue judicial sales on behalf of lenders, ensuring the process is conducted in full compliance with the Rules of Civil Procedure and that the lender's security is fully protected throughout.

Private Lender & Syndicated Mortgage Representation

We have significant experience representing private lenders, MIC lenders, and syndicated mortgage participants. We advise private lenders at the time of advancing funds on mortgage documentation, priority searches, title insurance, and structural considerations to ensure security is properly registered and enforceable before funds are advanced — preventing enforcement issues before they arise.

Borrower-Side Advice

We also act for borrowers who have received a Notice of Sale and wish to understand their rights, options for redemption, and how to respond to enforcement proceedings.