My own two cents as having just been through this...lenders in Ontario don't 'foreclose', they employ 'Power of Sale' provisions which form part of the mortgage contract you would have signed and means that they will ultimately take ownership and sell the house. The term 'default' is the key in all of this.

Is your mortgage CMHC insured? - If so, there is a protocol the lenders must follow to ensure they get their $$ from the insurance fund. If it is not at the lawyers yet, consider it nothing more than an insidious threat from their collections group.

My experience as a CMHC insured mtge is that after two missed payments (variable depending on the lender, as I had hit three - but also two at a later date), you will receive a letter from lender's solicitors indicating that they are acting on behalf of the lender and are activating the POS clause. There is lots of mumbo jumbo that makes it look like you have to pay the full mortgage amount plus late fees plus lawyers fees etc. etc., but unless your mortgage is at the renewal stage (in ON), then you just have to make up late payments plus other ancillary fees.

Depending on the type of POS clause in your contract, the letter from the solicitors will indicate that everything has to be paid by such date (usually 38 or 45 days after what they have determined as date of default).

Having worked in finance many moons ago, concur that each payment made should be applied against the earliest missed payment. 180 days late sounds suspicious to me as the lender would want to / have to reduce their risk much before that time.

My (non legal, non binding) opinion is that as long as you keep paying regularly and make some effort to make up the lost payment - things should be good. It is only when the lawyers get involved and you receive the dreaded registered letters (which absolutely must be registered or hand delivered advising about the POS), that you know things have gotten to the more serious stage. The rest is hot air, at least as far as my own situation had unfolded.

Good non soliciting website for some legal type info on Power of Sale is seems to be: http://genesismortgages.com/genesis-associates-mortgage-brokers-on-mortgage-legal_menu.html or you could read the mortgage act for Ontario (although the former is a lot less dry).

Good luck going forward - and again, above was my experience flirting with POS. I have never made it past this stage, so can't opine in any great detail what the next steps are.

Cheers.

They CAN foreclose. You worked in finance so you know every contract the banks have basically says "if you dont pay us we can have all our money whenever we ask for it, even if you don't have it" Usually banks try not to foreclose though, it's not an easy process for them.

MP isn't really going to do much for you here. I'd go to the ombudsman or office of the president... whatever they call the escalated complaint department.

I am in Ontario, I am with Firstline Mortgages, (CIBC), I have been dealing with the collections department, calling themselves the legal department now.

I will look at the contract, my job situation has changed I am not sure I could get refinanced, I would prefer to make arrangements to get caught up, but they want all now or nothing. Blood from a stone situation, I have already made it tight paying the 75% payment so qucikly, I had asked to break the payment down to 4 payments, even over 2 months, but they want it within the week "or else".

I worked in fiancial services, and my understanding is Eg I miss a payment in September 1st, but make the october 1st payment, I avoid the account going over 30 days late and am now late for the October 1st payment.

According to them, they are treating the account as I am 180 days late for 1 payment. even though the $$ amount is 1 regular monthly payment, they are treating it as 180 days.

I feel I am only 1 payment behind the Feb 1st payment, and when I pay a payment March 1, then I would only be late 1 payment from March 1.

I am trying to make arrangements, but can only make arrangements I can keep. I was forced to agree to the arrangements, for 3 payments when I only have the ability to make 2. I can make the 3rd payment within the next 30 days, along with my regular payments.

I am feeling like if they are going to foreclose why bother making the payments. I am not going to do that but that is how i feel.

I was considering calling my MP but not sure if that would do any good.

What province are you in and who is your lender? In Manitoba you can bring your mortgage current and up to date, pay the legal fees and the mortgage is back in good standing. Technically, from what you are saying, I believe you are behind by one payment. Unfortunately when you talk to someone at the counter its one thing and then once its out of the branch it may be handled in another fashion, (not so understanding)

Ask them to send you documentation and payments that have been made since August and this will let you know where you stand and may as well open their eyes.

As well, like Joe says, read over your contract/agreement with them.

I don't think any mortgage company wants to foreclose the way things are going these days. I would try and refinance your mortgage so you can have a lower payment. I would read your mortgage contract and there should be a hardship clause in there.

I missed a mortgage payment back in August, I had made all subsiqent payments since, and I recently missed Feburary 1st payment, The missed payments we caused by job loss(self employed no EI or assitance), I am back to work as of March 1, but won't be paid for nearly 3 weeks after I start. My mortgage company called and stated they are forclosing and I will be receiving a letter to this effect. I have made a partial payment of 75% of 1 payment and plan to make my regular payment on the 1st. I said I would be able to make the additional 25% of the 1 payment as well and hope to catch up before the end of March, or first week of April as I will be getting paid again. They claim the mortgage is over 180 days late from the August payment, and the 75% payment I made went towards the February payment I missed, and unless I Pay the full amount by March 1, they are going to forclose.

Can they do this?? As of March 1st, I will only be $$ wise 1 month behind. I had always though anypayments to an account go towards the arrears. Thank you