Definition
Forced sale is a mortgage remedy allowing the creditor to sell the property (or force its judicial sale) to recover their claim, without necessarily taking ownership.
**Contexts in Quebec**: 1. **Judicial sale**: the creditor asks the court to order judicial sale of the property; proceeds repay creditors in order of rank 2. **Sale by mortgage creditor**: Quebec Civil Code allows the creditor to sell the property themselves under certain conditions (rare in practice)
**Difference from taking in payment**: - Taking in payment: the lender becomes owner, the debt is extinguished - Forced sale: the property is sold to a third party; if proceeds exceed the debt, the surplus goes to the borrower (or junior creditors); if deficit, in Quebec, the debtor may still be responsible
**Power of Sale (outside Quebec)**: In common law provinces (Ontario, British Columbia, Alberta), 'power of sale' is the main remedy. The lender can sell the property faster than a judicial foreclosure. If sale proceeds are below the debt → the debtor must pay the deficit ('deficiency judgment').
**Foreclosed properties as purchases**: Properties sold by creditors (foreclosure/power of sale) are often underpriced. Risks: unknown condition, legal delays, 'as-is' sale without legal warranties. Standard financing possible but bank appraisal mandatory.