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Foreclosure is a court-supervised process through which a lender can ultimately take ownership of a defaulted property, used instead of power of sale in provinces where mortgage law follows a judicial process.
Provincial property and mortgage law, not federal rule, determines which remedy a lender uses after default. In provinces where the process is judicial, the lender applies to the court, and the matter proceeds through defined court stages before title can transfer or the property can be sold under court supervision.
Because it runs through the court system, foreclosure is generally slower and more procedurally involved than a power-of-sale process. Borrowers facing foreclosure typically have opportunities during the court process to redeem the mortgage — bringing the account current, or otherwise resolving the default — before the process concludes.
Common in British Columbia and Alberta: these provinces typically use a judicial foreclosure process rather than a lender-driven power of sale.
Court-supervised: the process runs through the court system, with defined stages and timelines set by provincial civil procedure and mortgage law.
Redemption opportunities: borrowers generally have a chance during the court process to cure the default before the matter is finalized.
Different remedy, same root cause: foreclosure and power of sale both follow from the same starting point — unresolved arrears — but which one applies depends entirely on the province.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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