I have a mortgage with bank C which is current and up to date. The property and mortgage are in both my wifes and my name. The mortgage is insured with national mortgage insurance company.
I am being sued by the same bank C for unpaid credit card debt which I have been attempting to settle with them - unsuccessfully so far.
If they obtain a judgement (default or otherwise) and end up with a lien on our home, my question is: (a)
Can they force us to sell the property or do they just have a lien? (b) Who pays the real estate commission if they can force a sale? (c) I have my real estate license. Is this a factor in (b).
Asked 7 months ago in Toronto, Ontario
Categories:
Civil Litigation
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 Ontario lawyer
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(a) If the bank files a Writ of Seizure and Sale against you, the bank will have two options: (1) they can leave it registered against your name and it will stand as security against your property until you sell or remortgage the property (ie. when you sell or remortgage they will need to be paid out in full, including costs to enforce the judgment before you can transfer the property or register a new mortgage) or (2) they can ask that the Sheriff sell the property, which means that they would have to post security for the costs of the sale, among other things. This is usually a very expensive and tedious process, so it is not often taken by the creditor.
(b) If the bank were to force the sale, all costs of the sale, including any real estate commission, would come from the sale proceeds. However, if the bank forced the sale pursuant to its writ of seizure and sale it would not likely be listed for sale, but rather sold by the Sheriff; and
(c) You would have to check with your licensing board as to whether or not the judgment against you would cause you difficulty with your license.
You should get formal legal advice on this matter as soon as possible, because depending on the wording of your mortgage, the registration of a writ of seizure and sale against you may constitute a default under that mortgage, in which case it is possible that the bank would have a right to call in the mortgage.
Posted 7 months ago
Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation).
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Comment from Toronto, Ontario
Thanks very much for the answer Vicky. How does this work when I only own 1/2 of the house?
Posted 7 months ago
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Ontario lawyer |
The creditor is entitled to collect from your half of the asset. So, if they were to force the sale, then they would be able to seize money from half the proceeds.
Posted 7 months ago
Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation).
Contact Vicky L Seaton, search
the Lawyer Directory, or use our free Lawyer Referral Service.
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