If you’re facing foreclosure in Toronto, the situation can feel overwhelming. But here’s the good news: yes, you can still sell your home during foreclosure — even if the bank has already started the process.
In fact, selling before the foreclosure process is finalized could protect your credit and help you walk away with cash in hand rather than nothing at all.
Foreclosure in Toronto: What It Really Means
In Ontario, the foreclosure process typically happens through a power of sale, not a full legal foreclosure like in the U.S. This means the lender (usually a bank or mortgage company) has the right to sell your property to recover their loan, but they must give you a chance to pay or sell first.
Here’s a simplified version of how it works:
📊 Power of Sale Timeline in Ontario
| Stage | Timeline (Approx.) | Homeowner Options |
|---|---|---|
| Missed Mortgage Payments | 15–30 days after default | Bring payments current, sell |
| Lender Issues Notice of Sale | 45–60 days | Sell before lender moves forward |
| Redemption Period | 35–45 days after notice served | Still allowed to sell the home |
| Statement of Claim & Eviction | 2–4 months later | Court process begins |
| House is Sold by Lender | Varies | Too late — lender controls sale |
👉 You can sell up until the lender takes possession or sells the home themselves.
Foreclosures Are Rising in Toronto
The number of homeowners defaulting on their mortgages in the Greater Toronto Area has been rising.
📈 Toronto Power of Sale Trends (2020–2024)
This increase is largely due to:
- High interest rates
- Inflation and cost-of-living pressures
- Job losses in tech, construction, and real estate sectors
If you’re behind on your mortgage, you’re not alone — and acting quickly is key.
Can I Still Sell My Home If It’s In Foreclosure?
Yes. As long as the bank hasn’t completed the sale, you still own the property and have the legal right to sell it.
In fact, selling on your own (rather than letting the bank sell it) often means:
✅ You avoid legal fees, penalties, and commissions
✅ You protect your credit score from a full foreclosure judgment
✅ You may walk away with money after paying off the mortgage
How SLG Home Buyer Can Help
SLG Home Buyer specializes in buying homes in distress — including homes that are behind on mortgage payments or already in the foreclosure process.
We offer:
✔️ Fast cash offers
✔️ No agent commissions
✔️ No repairs or cleanup needed
✔️ Flexible closing dates — sometimes in as little as 7 days
✔️ Discreet, no-pressure process