Humber/Ontario Real Estate Course 2 Exam Practice

If a residential property is under foreclosure, what rights does the mortgagor retain?

1. The right to repurchase the property.

2. The right to continue living in the property indefinitely.

3. The right of redemption until the foreclosure is final.

4. The right to reject the foreclosure proceedings.

The correct answer is: The right of redemption until the foreclosure is final.

When a residential property is under foreclosure in Ontario, the mortgagor retains the right of redemption until the foreclosure is final. This means that the mortgagor has the right to pay off the outstanding mortgage balance, including any additional costs or fees, and reclaim ownership of the property before the foreclosure process is completed. Option A is incorrect because the right to repurchase the property is typically not automatic in a foreclosure process unless explicitly outlined in the mortgage agreement. Option B is incorrect because the right to continue living in the property indefinitely is not guaranteed during the foreclosure process. Once the foreclosure is finalized, the mortgagor may no longer have the right to remain in the property. Option D is incorrect as the mortgagor does not have the right to reject the foreclosure proceedings once they have begun. The foreclosure process is typically initiated by the lender when the mortgagor is in default, and the mortgagor's options are limited once this process is underway.