Ontario Mortgage Agent Practice Exam

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Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What happens if the borrower does not file a statement of defence in the power of sale process?

The lender automatically loses the case
The borrower is granted an extension period
The lender obtains default judgement and possession
The property is transferred to a new owner

The correct answer is: The lender obtains default judgement and possession

If the borrower does not file a statement of defence in the power of sale process, it means they have not responded to the lender's legal action. This inaction can result in the lender obtaining default judgement, which means the court declares that the borrower has failed to comply with the terms of the mortgage and grants the lender the right to foreclose on the property and take possession of it. Therefore, option C is the correct choice. Option A is incorrect because the lender still needs to prove their case in court and cannot automatically win. Option B is incorrect because the borrower does not automatically get an extension period without taking legal action. Option D is incorrect because the property does not automatically transfer to a new owner without the legal process being properly followed.