Mortgage lenders in Ontario are able to use the power of sale process to recover their mortgage investment by selling the mortgaged property. Lenders are legally permitted to put the homeowner in power of sale if the homeowner misses any mortgage payments, or breaks any other terms of the mortgage. The power of sale takes around 3 to 4 months to complete and ends with the homeowner being evicted and having their property sold. In Ontario a power of sale is preferred over foreclosure as it is the most efficient way for a lender to recoup their investment. In foreclosure, the lender takes ownership of the property but in power of sale the lender simply has the right to sell the property. The foreclosure process can take over a year but when the lender takes title to the property they take all the equity in it. With a power of sale, the former homeowner receives all the money left over after the sale of the property. Since the fees involved in power of sale are usually quite high, there typically is very little money left for the homeowner.
If you are currently in power of sale or expect to be in power of sale, acting quickly can help you save money. Each document related to the power of sale costs money to be written and delivered. These costs are passed on to the homeowner and deducted from the money produced by the sale of the home. This means that if you can stop the power of sale upon receiving the initial notice, you will incur minimal charges. There are several diffident ways to stop the power of sale process. If you have enough equity in your home, it may be possible to get a second mortgage and bring the problem mortgage back into good standing. Another way to stop the power of sale is to replace the problem mortgage with an entirely new mortgage. There are many private mortgage lenders that will lend to people in power of sale regardless of income or credit scores.
If getting a new mortgage is not an option, then the next best option is to sell the home yourself. Once your home is put up for sale, most mortgage lenders will stop their power of sale proceedings and allow the sale to complete. Once the house is sold, the mortgage is paid out and the power of sale proceedings are stopped immediately. Selling the home yourself also allows you more time to move out your belongings and find another place to live. When the homeowner sells their home, the final sales price is typically higher and the fees related to the power of sale are much lower. If you or a loved one need help to deal with a power of sale you can contact Ron Alphonso. Ron is the principal broker at Mortgage Broker Store and he specialises in stopping power of sales and foreclosures. You can reach Ron directly at 416-499-2122 or by email at ron@mortgagebrokerstore.com.
