Below is some information regarding power of sale and your options to avoid this process altogether. Contact us for free advice and how we can help by buying your home privately, quickly, low/no comissions, and help you access your equity sooner rather than later.

When can the bank take action from non payment?
For a bank or lender to put your home into power of sale or foreclosure (uncommon in Ontario), a home owner must be in breach or default of one of the mortgage terms agreed upon in the mortgage commitment orginally signed.

Mortgage arrears is the most common cause of a power of sale.

What are the next steps?

Once you have received a Notice of Sale, the lender’s law firm will continue to proceed with the power of sale process unless they are stopped. The entire process takes around three months depending on how quickly the paperwork is processed. The Notice of Sale is sent 15 days after the initial default and then the homeowner has a 35 day redemption period where they can bring the mortgage back into good standing. In this case, putting the mortgage back into good standing refers to paying the mortgage arrears and any other penalties to resume the mortgage. If the mortgage is not brought back into good standing then the lender can file for a Writ of Possession which allows the lender to appoint a sheriff to evict the homeowners. At this point, the only option most lenders will allow is to pay off the full balance of the mortgage.

How can I fix the situation?

If you receive any power of sale documents (Notice of Sale, Statement of Claim, Writ of Possession, and Eviction Notice) then it is absolutely crucial that you act immediately. Many lenders will charge legal and other administrative fees as the power of sale progresses. If you have only just missed a mortgage payment, then you can directly call your lender to negotiate a plan to keep up with your mortgage payments. Your lender may agree to refinance your mortgage to make the payments manageable. If your lender is not willing to talk to you, and informs you that your case has been sent to their legal team, then you are currently in power of sale and must resolve any issues with the legal team instead of the lender. Negotiating with a legal team can be difficult, they will typically only accept full payment of mortgage arrears plus administration fees or a full payout of the mortgage plus administrative fees. If you are allowed to bring the mortgage back into good standing, an option is to take a second mortgage to gather the money needed to pay the arrears. If you must pay back the mortgage in full, typically the best option is to replace the mortgage with an entirely new mortgage. If you cannot get approved for a new mortgage then the best option would be to sell the home yourself. By selling the property yourself, you have more control over the timeline of your moving out and you can avoid the fees that the lender would charge for selling your home.
 

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.
Download Sample Notice of Sale Under Mortgage Document

What Is A Statement Of Claim In A Power Of Sale Or Foreclosure?
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.
Download Sample Statement of Claim In A Power of Sale Document

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Bad tenants? Landlord & Tenant board meetings, legal notices forms, and battles with professional tenants are common reasons for property sale.

Overwhelmed by repair bills? Repairs can magnify already complicated situations, however, avoiding improart maintenance could lead to more short & long term complications.

Need a way out? We buy homes and create win win solutions for us and sellers alike.

 

We work with people in all types of situations. If any of these apply to you, let's talk.

• Reparis too expensive (leaking roof, old electrical, foundation, heating & cooling, etc)
• Expired listing - your realtor couldn't sell
• Trouble tenants- not paying or ruining your property
• Need to relocate / new job
• Abandoned / condemned / foreclosure
• Unexpected need for Cash
• Don't want to pay realtor fees
• Behind on payments
• Don't use high interest credit (Credit cards) to pay mortgage
• Etc.

We can help regardless of your situation. There are win win solutions available today!

How it WORKS...

Step 1: Tell us your situation and we'll talk about how we can help

Step 2: We view the property and make an offer

Step 3: Simple paperwork and win win terms

Step 4: You get PAID! Your stressful house is off of your hands and you can move on!