Here are the following steps taken by a lender for the Manitoba foreclosure process including the time frame.
1 Demand Letter
10 -14-day timeline Generally issued after a month’s default unless otherwise stated
2 NEPS is issued
(Notice of Exercising Power of Sale)
This can be served before LTO (Land Title Office) approval, but it is recommended that it is served after LTO approval in the
event a change is required. Must be served personally on the mortgagor and any other parties that appear that have an interest in the property. (Spouse, Common-law Partner) Note: Homestead land does not apply
3 Continued default & Application for Order of Sale
within the 20-day period after Statement of Claim is issued Issued if a default has exceeded 30 days of the NEPS.
The lender applies with the District Registrar of the LTO for either public auction sale, private sale, or both. Auction Sale has priority but only 1 opportunity.
4 Court Order
This is required in most cases if the lender is not a charter bank.
5 Auction Advertisement
Minimum 14 days – 16 days Must be advertised in one of the local daily newspapers prior to the sale date.
May require 2 newspaper advertisements. Copy of Advertisement must be
ii Possession Borrower remains in possession of the property until after sale or foreclosure unless the lender demands an earlier
iii Transfer After Successful Auction Successful bidder must provide a 20% down payment. (Cert. Chq / Bank Draft); and enter in to an Agreement to Purchase.
6 If Auction not successful, Private Sale
Notice of Intent to sell by Private Contract must be sent with NEPS at least 16 days before submission of the purchase
and sale, for LTO approval.
ii LTO Approval for Private Sale - Must be approved by District Registrar of LTO
- will only approve if the price is within 90% of the average price/appraisal
iii Deficiency Liability If there aren’t enough funds to discharge the mortgage, the borrower will remain liable.
7 Notice of Motion for Final Order for Foreclosure
If the mortgage has remained in default for 6 months, the Lender can apply with the District Registrar for a
Notice of Final Order of Foreclosure/Final Notice to Redeem
ii Issue of Order of Foreclosure / Final Order of Foreclosure Title is transferred to the Lender.
- Must be served personally to the Borrower and all interested parties.
- The borrower may apply for an extension. It is generally only granted if there is a legitimate reason for delays.
Manitoba Foreclosure Timeline Process Notes
• At any time before actual sale, the mortgagor can reinstate the mortgage provided all arrears are paid, the mortgage isn’t a demand loan, and if the – maturity date has not passed.
• Auction Sale is “as is, where is”
• Auction Reserve Bid – a price set by the lender that is typically the balance owed plus costs, or a reasonable Fair Market Value