Short answer
Do not do it without independent legal advice. FCAC warns that foreclosure-rescue fraud can involve persuading a distressed homeowner to transfer title in exchange for a loan, after which the fraudster may resell or refinance the property.
The urgent client problem
A homeowner under deadline is offered fast money and told the title transfer is “temporary paperwork.” The proposed rescuer chooses the lawyer, discourages lender contact and promises the home will be transferred back later.
What the official rule says
FCAC identifies title fraud, foreclosure fraud and mortgage-application fraud, and recommends dealing with licensed professionals, reading documents, contacting the lender first, consulting an independent lawyer and checking land title and credit reports.
What this rule does not guarantee
Not every private mortgage or sale-leaseback is fraudulent, but urgency, unclear beneficial ownership, guaranteed approval, cash fees, falsified documents or loss of independent advice are serious warnings. A legal transaction can still be commercially harmful.
A practical Ontario example
Illustration only: A company offers to cure $25,000 of arrears if the owner signs over title and rents the home back. The documents actually permit a sale or new mortgage, while the homeowner loses control and still faces occupancy risk.
Practical options to explore now
Pause before signing. Use your own Ontario lawyer, verify every party and registration, request complete cost and repayment terms, and compare a negotiated lender cure, transparent MIC/private bridge, conventional sale or other documented solution.
Before choosing a solution, confirm
- The exact default, maturity, notice and proposed-sale dates.
- Every mortgage, lien, tax balance, arrears amount and recoverable cost.
- Current realistic property value and conservative net sale proceeds.
- Whether the proposed financing cures the entire title problem.
- The exit from any alternative/B, MIC or private solution.
Rajiv’s broker perspective
The first question is not simply, “Who will lend?” It is, “How much time and equity are actually left, and which solution improves the client’s position after every cost?” Ontario law controls notices, liens and enforcement. Each lender separately decides its underwriting, cure, renewal and payout policy. I would compare the existing-lender remedy, A or alternative/B refinancing, an appropriately structured MIC or private bridge, and a controlled sale. The best option is the one that resolves the whole problem and has a credible next step—not the option with the fastest promise.
Related: Mortgage declined? Start here · Mortgage Knowledge Centre · Updates & Rules Centre
Received an arrears letter, lien or power-of-sale notice?
Do not wait for the next deadline. Send Rajiv the notice, mortgage statement, title debts, property value and the outcome you want. He can prepare a confidential second opinion and compare practical lender routes while your lawyer confirms the legal timeline.
Request an urgent mortgage second opinion Ask for an Ontario mortgage lawyer referral