The applicant sought to set aside a default judgment for foreclosure obtained by a private mortgage lender after she missed a single $650 payment.
The property, valued at $575,000, was sold to a third-party corporation for $425,000.
The court found that the equities favoured the applicant, noting the disproportionate consequences of her default and that the purchaser was not a bona fide purchaser for value without notice.
The court also found the default judgment was irregularly obtained because the assignee of the mortgage failed to give the applicant written notice of the assignment before foreclosing.
The application was granted, the default judgment set aside, and the property ordered to be sold at fair market value.