Deficiency judgments should continue to be available in Nova Scotia if the sale proceeds are inadequate to pay the mortgage debt and costs incurred by the lender as a result of the sale of the property. Lenders should be required, within 30 days of a sale, to advise borrowers that the property was sold and the price at which it was sold. If the lender wishes to claim a deficiency judgment, the lender must provide the borrower with an accounting. If the lender does not provide the borrower with an accounting within 30 days of the sale, the borrower be able to require an accounting by applying to the court within 30 days from the date it was notified of the sale. After the property is sold, lenders should be required to apply to the court to claim a deficiency judgment.
Borrowers can also apply to the court to require that the lender provide an accounting of the sale.
Reform should be accomplished through legislation although amendments to the Civil Procedure Rules and Practice Memorandum may also be required.