A Judgment for Possession is a document that is part of Ontario’s Power of Sale process. A Judgement for Possession is awarded by a court judge to a mortgage lender after a Statement of Claim has been submitted. The judgment states that the court acknowledges the money claimed by the lender and it allows the lender to take possession of the property. The judgment allows for a Writ of Possession to be issued which leads to the local sheriff evicting the property’s occupants. This document can be identified by the word “Judgement” being featured in big bold letters near the top of the document.
After Judgement for Possession is granted, the courts will issue a Writ of Possession to all parties with an interest in the property. This includes the properties occupants, owners, and all lenders. The Writ of Possession is also sent to the local sheriff office which will arrange for a day and time to evict the property’s occupants and give the lender stated in the Writ of Possession control of the property. Once the lender has control of the property they will list it for sale using a licensed real estate agent. When the property is sold the mortgages registered against the property are paid off in the order in which they were registered. Any excess profits after debts have been paid off go to the homeowner, however, this usually isn’t much any all fees are deducted.
After the judgement is granted, you must find a solution before the property is sold by the lenders. Most lenders will refuse to resume the mortgage and will demand a full payout of the money they are owed in addition to fees. The two main solutions at this point are to get a new mortgage to pay out the lender or sell the property yourself. In some cases, a new mortgage is placed on the property which allows enough time for proper renovations and marketing for the property.
The above information is general advice and it is strongly recommended to seek a legal professional when dealing with a Judgement of Possession in a Power of Sale scenario. A Power of Sale can be a very complex legal process depending on the circumstances. Our team include lawyers who specialize in Power of Sales and real estate law. For a free consultation please call 416-499-2122 or email ron@powerofsalesontario.ca.
