Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.
Issue link: http://digital.canadawide.com/i/309414
legalprinciples Schedule A Demand for Payment (demand period) Petition, Affidavit & Certificate of Pending Litigation Personal Service Order Nisi & Judgment (redemption period) Order for Conduct of Sale (listing period) Order Approving sale (execution on Judgement) Order Absolute Order for Alternative Service 28 | spring 2014 mbabc.ca MortgageBroker Foreclosure is is the "original" method of enforcing mortgages. Lenders can obtain an Order (an Order Absolute) in a Foreclosure Proceeding that extinguishes all rights of the borrower and all parties with interests in the property that is the subject of the Charge ranking subsequent to the lender. An Order Absolute makes the lender the legal and beneficial owner of the real property and vests title to the property in the lender free of all charges except those of parties with interests in the property ranking prior to the lender (for example, property taxes and most condominium charges). A lender can register an Order Absolute at the Land Title Office, which will create a new title to reflect the foregoing. An Order Absolute requires all parties in possession of the real property to deliver up possession to the lender, failing which they can be evicted by the Court Bailiff. Orders Absolute also have the effect under Section 28 of the BC Property Law Act 3 of making all Judgments or covenants unenforceable. Orders Absolute are relatively rare as a result of the requirement to pay property purchase tax and their making Judgments unenforceable. How are a mortgage lender's rights enforced? A Foreclosure Proceeding is the summary legal proceeding by which a lender enforces a mortgage in British Columbia. It is enforcement of the Covenant (by Judgment and execution) and enforcement of the Charge (by sale or Foreclosure Proceedings). Very simply stated, foreclosures usually proceed as set out below. Commencement Aer default under a mortgage, and demand for payment, the following three documents necessary to commence a Foreclosure are created: a. A Petition; b. An Affidavit, supporting the facts in the Petition; c. A Certificate of Pending Litigation (a " CPL"). e Petition, Affidavit, and CPL are all filed at the appropriate Court registry and the CPL is immediately thereaer filed at the appropriate Land Title Office. Parties e Petition names as parties to the Foreclosure Proceeding all parties liable on the Covenant and all subsequent charge holders (for example, second mortgage holders, judgment creditors, and builders' lien claimants). Order Nisi Aer all the parties are served, the lender applies to Court for an Order Nisi. is Order is, in many ways, the most important one made in a Foreclosure Proceeding. ere are four main components to an Order Nisi: • A Declaration that the mortgage is in default and an Order setting the redemption period (the time during which, prima facie, the mortgage may be paid out); 3 R.S.B.C. 1979, ch. 340 Vector Pacific Mortgage.indd 1 14-01-15 2:50 PM p26-29_MortgageEnforcement.indd 28 14-05-08 2:31 PM