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The process of foreclosing in Ontario is quite quick, as the proceedings are usually laid out in the mortgage documents. Power of sale was first developed in Ontario by lenders who wanted a faster way to liquidate s property and recover a bad debt. As a result, they started to include power of sale provisions in mortgages that would allow them to dispose of property under the borrower's default and without having to resort to the courts. Power of sale is now part of the Ontario Mortgages Act.
The Mortgages Act refers to two different types of power of sale: Contractual and Statutory. Contractual power of sale is when the mortgage documents have included power of sale provisions. Statutory power of sale is when the mortgage documents have not included power of sale provisions. While statutory power of sale is very rare, the lender can still exercise power of sale as long as the borrower has defaulted for three months or longer
Finding homes in Guelph or Cambridge that have been taken over by the lending institution can be a very profitable and ideal for a "flip". This of course takes a lot of hard work but can be quite rewarding