The Foreclosure Process in Manitoba

Foreclosure in Manitoba is much like the same process in British Columbia and Alberta. However, prior to going through the Court, certain additional steps must be taken. Before going to Court, foreclosures in Manitoba must first be registered through the Land Titles Office.

When borrowers find themselves unable to make their mortgage payments, lenders often choose to satisfy the debt by selling the land or taking possession of it.

The first step toward foreclosure requires that a Notice of Exercising Power of Sale be registered with the Land Titles Office. This notice provides some general details about the debt, length of delinquency, description of the property, and what is required to bring the loan back into a positive standing. Once this notice has been duly registered, a copy is hand delivered by a Land Titles Office representative or equivalence thereof to every individual who is registered property owners or who is affected by the foreclosure proceedings.

Once the notice has been delivered, all individuals affected are given one month to bring the mortgage into good standing. If the named property owners fail to do so, the lender may apply for permission from the Land Titles Office to dispose of the land, thereby using the proceeds from the sale to pay for the debt. This sale may be conducted by auction or private sale, but typically through a licensed real estate agent. If the property is sold, borrowers will be required to pay the difference between the proceeds and the total mortgage debt. Likewise, borrowers must also pay for any and all reasonable legal or foreclosure related expenses, along with other incidental fees.

If at the conclusion of such sale the land remains unsold, the lender may then apply for foreclosure to the Land Title Office. In cases such as these, the lender becomes the lawful and rightful owner of the property. Notice of foreclosure is once again hand-delivered to all affected parties. When the lender becomes the rightful owner of the property due to foreclosure, all debt is extinguished.

Borrowers may choose to bring their mortgage loan account into good standing at any time during the foreclosure process up and until the property rights are terminated. Arrangements such as these are at the discretion of the mortgage lender. Borrowers should never assume that such arrangements represent their rights, rather, they are offered as a favor or good-will gesture.