January 2025
Mortgage fraud can be difficult to understand.
You obtained a mortgage for your condominium, and have been making all required payments to the mortgagee. One day you receive a Notice of Sale from the mortgagee stating that your mortgage is in default. They will sell your property to recover the full amount due which includes fees, interest and penalties. The notice gives you 35 days before further action is taken.
This nightmare scenario can be caused by mortgage fraud. You need to figure out what has happened and deal with it.
A lawyer can contact the law firm and request your mortgage file. They can assess your case and determine if mortgage documents were forged, falsified or fraudulently registered without your knowledge. Someone may have filed documents stating you are in default of your mortgage, taken legal possession of the property, and may be attempting to sell it. If successful, the fraudster may disappear with proceeds of the sale before being identified and apprehended.
If you are the victim of mortgage fraud, your first step is to try and preserve your rights. You want to retain your home and prevent it from being sold. Failing at this, your home could be sold and the fraudster departed before any legal judgement in your favour has been obtained. Any legal protection you receive after this occurs would be a “hollow judgment” whereby you obtain a judgement in your favour with no assets or money available to recover.
If you obtained title insurance, the insurer may cover losses sustained by homeowners who are victims of fraud if there is evidence of forgery or document falsification.
Mortgage fraud should be reported to the police and the Canadian Anti-Fraud Centre. Unfortunately, this does not always ensure your fraud situation will be investigated unless it is widespread and affecting dozens or hundreds of homeowners. Police and fraud investigators have limited resources and are unlikely to investigate an isolated incident.
If you are a victim of mortgage fraud, time is not on your side. Consult with a commercial litigator who can help you to discharge the mortgage and regain control of your home.
