Behind on Your Mortgage in Saskatchewan? The Provincial Mediation Board

Falling behind on a mortgage is stressful, and getting a formal notice from your lender can make it feel as if the process is already out of your hands. It usually is not. Saskatchewan law builds in a pause before a lender can start a foreclosure in court.

This article explains what that notice means, who the Provincial Mediation Board is, and how the waiting period can be used. It is general information, not advice on your own situation.

This article covers the law of Saskatchewan.

Why the Provincial Mediation Board is involved

A mortgage lender on land in Saskatchewan can foreclose only by an action in the Court of King's Bench. Before it gets there, the lender must give notice to the Provincial Mediation Board (PMB) under The Land Contracts (Actions) Act, 2018.

The lender does this by serving both you, as the mortgagor, and the PMB with a notice of application for leave. If you have received that document, it is the lender's formal first step toward foreclosure.

In plain words, this means a lender cannot simply take over a property because payments have been missed. There is a required notice step first, and a court action after it. The details of how this applies to your mortgage depend on your situation, so it is worth confirming them with a lawyer.

The 60-day notice and waiting period

The notice of application for leave must be served at least 60 days before the hearing date. The lender must also wait 60 days after notifying the PMB before starting the court foreclosure process.

In practice, this gives you a window of time. Foreclosure is also not quick: it is unlikely to be completed in under six months from when the lender sends the file to a lawyer. That is a general guide, and your own timeline depends on the facts.

Two different 60-day periods are described here: one is measured against the hearing date, and the other runs from the point the PMB is notified. Compare them with the dates on your own paperwork, and ask a lawyer if the dates do not seem to line up.

How the PMB uses the time

The PMB uses the notice period to talk with the borrower about options such as paying arrears, selling the property, or transferring it to the lender.

• Paying the arrears: catching up on what is owing, if you can arrange the money.
• Selling the property: sometimes a sale on your own terms is better than a forced outcome.
• Transferring the property to the lender: a negotiated handover rather than a contested court process.

Which option suits you depends on your finances, the value of the home and the terms of your mortgage. A lawyer or accountant can help you compare them.

Each option has consequences for your credit, your housing and your other debts, and those consequences vary from person to person. Having a clear picture of your numbers before the conversation makes it easier to judge what is realistic.

If the land is farm land

Farm land follows a separate process under Part II of The Saskatchewan Farm Security Act. The Farm Land Security Board reviews farm foreclosures, and mediation is involved before the creditor can go to court.

The Farm Land Security Board administers Part II, which deals with farm foreclosure protection. If your mortgage is on farm land, do not assume the steps above apply in the same way. Confirm which process covers your property.

If you are unsure whether your property is treated as farm land for these purposes, that depends on the facts, and a lawyer can confirm it before you rely on either process.

Questions to prepare before you speak with anyone

A conversation about your options goes better when you know your own position. Before you talk with the PMB, your lender or a lawyer, it helps to have answers to a few plain questions.

• How much is behind, and how did the arrears build up?
• Is your income likely to recover, and by when?
• What might the property sell for, and would a sale cover what you owe?
• Which documents have you received, and on what dates?
• Who else is on the mortgage, and were they also served?

What to do next

• Read any notice carefully and note the dates on it, including the hearing date.
• Gather your mortgage documents, recent statements and a list of your income and expenses.
• Contact the PMB during the notice period to talk through your options.
• Decide whether paying arrears, selling or transferring the property is realistic for you.
• Speak with a lawyer before you agree to anything, especially a transfer to the lender.
• Do not ignore the notice. Silence leaves you with fewer choices.

Acting early generally gives you more room to negotiate.

Frequently asked questions