What happens when a Bank forcloses on a Mortage?

Hello,

I'm sorry to hear about your friend's unfortunate circumstances. Here is some info I found online for you:

If your mortgage is more than 30 days delinquent, your mortgage company is likely to begin foreclosure procedures within the next sixty to ninety days. There are steps you can take to prevent foreclosure. For example, if you have the amount of money required to pay all past due payments (plus any attorney fees or foreclosure costs, if foreclosure has begun), the mortgage company will accept your payment and reinstate your mortgage. You may also contact your mortgage company and work out a repayment plan to bring your mortgage current. This usually involves your regular payment, plus an additional amount to apply toward your delinquency. Or, you may consider selling your home.

For more ways to avoid foreclosure, click the link provided in Source.

I believe when a bank forcloses on a property, the people are evicted from their home (which they failed to pay for), then the forclosure process begins. The bank can try to sell it on the real estate market. If that fails, the residence is put up for public auction. These type of ads can be found in the local newspaper, whichever one if the city/county official newspaper. It will give the date of the auction and legal description. The ad is usually ran at least three times.

I don't know about Canada. I hope she had legal counsel -- it should have definitely been worth it in this case. If it was here, they would sell the note and mortgage at foreclosure to a bidder or to themselves. They will probably send her a letter telling her who the note/mortgage was sold to and also an eviction letter. They could possibly sue her for any money and attorney's fees they were not able to make back at the foreclosure sale. She should still see an attorney to protect herself.

Not sure in Canada, but here the bank usually auctions it off for the amount that is owed to them.

The bank will sell the house to the highest bidder.

They take your house and sell it.