What Is A Power Of Sale in Ontario?
What Does Power of Sale Mean in Ontario?
A Power of Sale in Ontario is commonly caused by the home owner being in mortgage arrears, and falling behind on mortgage payments. Generally, a lender will proceed with a power of sale in any instance a homeowner has breached the terms of their mortgage agreement.
When in default of a mortgage, the lender demands repayment of mortgage arrears, or full pay out of their mortgage, in the form of an official demand letter issued by their lawyer.
Mortgage lenders in Ontario will then send you “Notice of Sale Under Mortgage” after 15 days of a mortgage default. The home owner has approximately 30 days to fix it during the notice of sale stage.
If the default has not been remedied after the 30 day period, the lender can issue a “Statement of Claim” to all parties that have any investment in the property, including the home owner, other mortgage lenders/banks on title.
The lender must follow a legal process to take possession of a home to be able to sell the property under power of sale, to get their mortgage amount back in full.
How To Stop Power Of Sale In Ontario
What To Do When In A Power of Sale Process?
To Stop power of sale process in Ontario, Canada today, get our expert mortgage brokers involved all the way. We can help stop power of sale or stop foreclosure, as we effectively negotiate with lenders, banks and lawyers to reach a resolution.
We present solutions to your lender and their lawyer with a specific timeline of events, and they generally co-operate with our offer. They usually give us enough time to resolve your matter, to avoid further costs on their part, and to stop the power of sale process.
During this time, we quickly act to arrange a private mortgage or second mortgage to pay out the existing mortgage lender(s). The private mortgage approval is solely based on your home equity and not your income, credit history or payment history.
An appraisal of the home will be required for the private mortgage in order to confirm the value, condition and marketability of the property. Typically, income or employment verification documents will not be required, as private mortgage lenders in Ontario will lend based on the home equity itself.
Power of Sale Versus Foreclosure In Ontario
What Is The Difference Between Power of Sale and Foreclosure?
Power of Sale Ontario
What Happens In A Power of Sale Process?
In a power of sale, the home owner under a power of sale still has the opportunity to save the same, up until the property has been sold. The home owner use their own real estate agent, depending on the particular governed area.
From a power of sale, if there are funds remaining from the equity in a proper, the remainder would go to the home owner. If there is a shortfall of money to cover all expenses the home owners are responsible to pay that amount.
What Happens In A Foreclosure Process?
In Ontario, Canada, a foreclosure is less likely the route any entity takes in proceeding on a defaulted mortgage agreement.
In a foreclosure, the title of the property will transfer to the lender, now making them the owner of the property. The lender will sell the property through means of their own choice. If there is a shortfall of money for the cost of foreclosure proceedings, the home owners are responsible to pay this amount.
Frequently Asked Questions About Power of Sale And Foreclosure
Common Questions People Have About The Power of Sale Process or Foreclosure Process In Ontario
What Is A Notice Of Sale Under Mortgage?
A Notice of sale under a mortgage, is a notice given by a lender to a borrower after 15 (fifteen) days of a mortgage default. The home owner then has 30 calendar days to remedy the mortgage default, which in most cases, is to bring mortgage payments up to date and in good standings. As per the Notice of Sale Under Mortgage, if the borrower fails to remedy the mortgage default after 30 days, the lender can file a “Statement of Claim” with a court, which will be sent to all who have interest in the property.
What Is A Statement Of Claim In A Power Of Sale Or Foreclosure in Ontario?
A “Statement of Claim” is a legal claim, or law suit a lender files with a local Small Claims court or Superior Court of Canada, which is the initiation of a law suit against the home owners. A mortgage lender will file a statement of claim as part of the power of sale process to have the courts determined the default of mortgage, and rule in favour of the lender to take possession of the property.
When Can A Bank or Lender Put My Home Into A Power of Sale or Foreclosure?
For a bank or lender to put your home into a power of sale or foreclosure, a home owner must be in breach or default of one of more of the mortgage terms agreed upon in the mortgage commitment originally signed.
Mortgage arrears is the most common cause of a power of sale.
Do I Need A Lawyer To Represent When In A Power of Sale or Foreclosure?
Home owners should retain a real estate lawyer to represent their best interest during a power of sale or foreclosure, to understand all of their legal rights and obligations.
Mortgage Associates Ontario is affiliated with a trusted network of legal professionals who can represent home owners in all power of sale stages.
Can I Get Evicted From My Home When In Power of Sale?
During a power of sale or foreclosure stage a home owner can be evicted from their home only with a local sheriff’s “Eviction Notice”. At this point the home owner and occupants are given a specific time period to vacate the property, at which time, the home will be in the possession of the lender.
Can I Get My Home Back After Being Evicted By A Sherrif?
Yes, even after an eviction from a sheriff via “Eviction Notice”, you can still save your home. A home owner has very limited time at this point, and must act right away to get a private mortgage to pay out the mortgage arrears or lender in full.
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