Toronto Homeowner Locked Out After Missing One Mortgage Payment as GTA Faces Wave of Power-of-Sale Listings

Earlier this year, 63-year-old single mother Yvonne Morrish returned to her Scarborough bungalow — only to find the locks changed and a notice on the door.

The letter, from RiverRock Mortgage Investment Corp., stated that the lender had taken legal possession of her home.

“I know it’s my fault,” she said tearfully. “But it’s breaking me.”

One Missed Payment, One Lost Home

In Canada, this process is known as Power of Sale — when a borrower defaults, the lender can seize and sell the property to recover its funds.

In Ontario, private lenders (MICs) like RiverRock can begin proceedings within two weeks of a missed payment.
CEO Nick Kyprianou confirmed Morrish missed her December 2024 payment and emphasized:

“A mortgage is a simple contract. If legal action starts, it’s because payments weren’t made and no resolution was reached.”

Morrish’s monthly payment was about $6,200. After missing one installment, RiverRock changed the locks citing “property abandonment.”
Her agent Jonathan Alphonso managed to unlock the home and helped her re-enter.

“As long as she’s living there, they can’t claim the house is abandoned,” he said.

Now, Morrish continues to live there with five dogs and two birds, waiting for her next court date.

Power-of-Sale Listings Rising Across the GTA

According to Realosophy Realty, distress sales are surging across the Greater Toronto Area:

• In Scarborough’s Highland Creek, nearly 1 in 10 listings (9.9%) are power-of-sale properties.

• Brampton, Brock, Oshawa, and Stouffville are also seeing a sharp rise.

Just a few years ago, such cases were rare — now they’re spreading across the GTA.

Why So Many Are Defaulting

Real estate analyst John Pasalis attributes the surge to two key factors:

1️⃣ Mortgage renewals at soaring rates — payments that were $4,000 five years ago now exceed $6,000–$7,000.
2️⃣ High-leverage investors collapsing — those who relied on student rentals saw cash flows vanish after Ottawa restricted foreign student permits in 2024.

From January to September 2025, about 1% of new GTA listings were power-of-sale homes, including:

• Condos (0.67%),

• Detached homes (1%).

Suburban regions are worst hit:

• Brock (2.87%), Stouffville (1.52%), Milton (0.94%), Oshawa (1.42%), Brampton (1.38%).

“These areas saw huge price gains during the pandemic,” said Pasalis. “Since 2022, prices have fallen by 20%–30%.”

He estimates that for every 1,000 power-of-sale cases, another 2,000–3,000 households are struggling behind the scenes.

Mortgage Defaults Hit 13-Year High

Credit bureau Equifax reports that Ontario’s mortgage delinquencies are now at their highest level since 2012.
Major banks show rising 90-day delinquency rates:

• BMO: 0.15% → 0.37%

• Scotiabank: 0.14% → 0.25%

• CIBC: 0.17% → 0.36%

Unlike private lenders, big banks often grant three-month grace periods and attempt repayment plans — but many borrowers still can’t keep up.

“Our phones never stop ringing,” said one GTA mortgage broker. “People would rather max out credit cards than lose their homes.”

“Losing a Home Feels Like Losing a Life”

Technically, borrowers remain the legal owners until the sale closes, but with falling prices, few recover any equity.

RiverRock CEO Kyprianou compared foreclosure grief to the five stages of loss — denial, anger, bargaining, depression, and acceptance.

“We try to help homeowners reach acceptance quickly,” he said. “Otherwise, their home equity just keeps eroding.”