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!

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Which step comes first in the power of sale process?

Providing a redemption period to the borrower
Filing a statement of claim for debt and possession
Delivering a Notice of Sale to all involved parties
The borrower defaults or fails to make a regularly scheduled payment

The correct answer is: The borrower defaults or fails to make a regularly scheduled payment

In the power of sale process, the first step is for the borrower to default or fail to make a regularly scheduled payment. This means that the borrower has missed a payment or has not made a payment within a certain time period specified in the loan agreement. Providing a redemption period to the borrower, filing a statement of claim for debt and possession, and delivering a Notice of Sale are all subsequent steps in the process. Providing a redemption period allows the borrower to pay off the remaining balance and avoid foreclosure. Filing a statement of claim is a legal action taken by the lender to secure possession of the property. Delivering a Notice of Sale is a formal notice to all involved parties that the property will be sold at auction. These steps can only occur after the borrower has defaulted on their payment.