Definition of Notice Department of Revenue

Receiving a notice from the Department of Revenue (DOR) means a borrower is now in full default of a loan and that their file is now being submitted to the courts for full foreclosure on the property. As a result, a Notice of Department of Revenue letter, otherwise known as a DOR, is an official notification and filing of a foreclosure. The lender is now implementing court proceedings to take over legal ownership of a property in order to recoup an unpaid debt.

Why is this term important?

The process of foreclosure on a property starts with the notice D.O.R. which is a letter delivered to the borrower at the property that is collateral for the defaulted loan. This notice provides information on how much is owed and the forthcoming procedures for foreclosure. In extreme circumstances, a notice D.O.R. happens as soon as two or three mortgage payments are skipped. As a result, it’s best to contact your lender to explain the situation, particularly if you’ve missed a mortgage payment. Remember, a late payment is better than a missed payment.

There are two foreclosure methods used in Canada: the power of sale and judicial foreclosure. The power of sale is a quick process that does not involve the court. Before the power of sale goes through, the borrower will be given a 35 day period in which they can resolve all payments and continue with their mortgage. If the borrower does not address all payments, they will be served a statement of claim for debt and possession and this statement is the beginning of the foreclosure process.

Judicial foreclosure is a long process that involves the court and can take up to six months to complete. Once the lenders receive a certificate of foreclosure from the court, they become the official property owners.

Examples of term

The foreclosure process and notice D.O.R. are as follows:

  • Receive official warning stating you are in danger of foreclosure due to late or missed payments
  • Served official foreclosure notice by mail or in person (either power of sale or judicial foreclosure)
  • If power of sale, you will have 35 days to resolve all payments and speak with lenders
  • If judicial foreclosure, you will have to appear in court to determine next moves