The foreclosure process in Manitoba is very similar to the process in Alberta and British Columbia. However, steps are taken through the Land Titles Office, prior to the process through the Court.
Where a borrower is in financial difficulties and is unable to pay a loan secured by a mortgage on land, the lender may take steps to sell the land or become the owner of it to satisfy the debt.
The first step is the registration in the Land Titles Office of a notice, called a Notice of Exercising Power of Sale, or NEPS for short. This notice gives some details about the land in question, about the debt and how it is not being paid and how to bring the debt back into good standing. The NEPS is delivered personally to every person affected by the proceedings and who is registered on the title.
If the debt is not brought back into good standing one month after the notice is delivered, the mortgage lender can apply to the Land Titles Office for permission to sell the land and use the proceeds of sale to pay the debt. The method of sale will be by private sale (usually through a real estate agent) or by auction sale.
If the property is unsold after an auction sale, the mortgage lender may apply to the Land Titles Office to foreclose. Foreclosure is where the mortgage lender becomes the owner of the land. A notice is delivered personally to affected parties once again, this time giving notice that the mortgage lender may become the owner of the land.
Mortgage borrowers will be responsible to pay any shortfall if the debt is larger than the sale proceeds. The debt will include reasonable legal and other costs of the mortgage lender in taking the steps described above. If the mortgage lender becomes the owner of the land through foreclosure, the debt may be extinguished.
While ForeclosureCanada.org strives to keep the information on this site accurate and current, ForeclosureCanada.org cannot guarantee the accuracy, completeness, or timeliness of the information.
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