Lenders Should Think Twice Before Foreclosing On Sympathetic Mortgagors

Many mortgage enforcement actions proceed through Ontario courts every day. When mortgagees are not paid in accordance with the terms to which they have agreed with the mortgagor, they have a number of options open to them. These options include foreclosure and power of sale proceedings.

There is often a sympathetic human element involved in mortgage enforcement proceedings where the collateral is the mortgagor's residence. However, the law is not traditionally seen as overly sympathetic. Lenders may believe that their legal rights in the event of default include foreclosure, and that this should not change depending upon the identity of the mortgagor. Generally, they would be right. However, the law is administered by humans and it allows – and often calls for – judges to reach decisions that they consider just on the facts, rather than applying a set of rules robotically.