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FAQs

I loaned some money to an individual and received a mortgage on that person’s home as security for the loan. The borrower has stopped making payments and has not responded to my letters or emails. What can I do to collect the money owing to me?

When lending money, it is always a good idea to obtain security from a borrower in the form of a mortgage or other security agreement. As mortgagee, you now have several options to help you recover the money owing. One option is to give notice to the borrower (also known as the mortgagor) that you intend to sell the mortgaged property under power of sale in order to recover the money owing to you. Such notice must comply with various statutory or contractual requirements. When selling a property under power of sale, you must meet several obligations and legal requirements as mortgagee. If you do not proceed in the required manner, you could be forced to start all over or, even worse, to pay damages to the borrower if you fail to sell the property in the required manner. We can discuss your options with you and help you take all of the necessary steps to protect your interests.

© 2015 Lawrence, Lawrence, Stevenson LLP

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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