If you are faced with a power of sale or foreclosure, there are some legal considerations to make. Our Burlington power of sale staff are available to discuss your options on both procedures and we can even help you choose the best one for your circumstances.
Burlington sits in the Regional Municipality of Halton on the NW edge of Lake Ontario. It is part of the west end of the GTA and close to the geographic centre of the Golden Horseshoe region. The area has a primarily white population with very few people from other nationalities. Most residents are Christians but there are also Muslims, Hindu and Mormons as well as a large section that does not follow any religion. It boasts a diverse economic base mainly driven by automotive and manufacturing. Burlington is a destination with the high quality of life ratings and it was recently named the second best city to live in Canada.
When you get the Notice of Sale Under Mortgage from banks or other lenders, there are two choices; pay up or allow banks to sell your home. For a power of sale, the “Notice of Sale Under Mortgage” is sent as by mail if a mortgage has been in default for 15 days. This notice gives 35 days to settle but if that fails, you will get a “statement of claim” which in fact a list of fees to be paid with the mortgage settlement. The charges include mortgage fees, legal fees, land rates due and other costs unique to the Burlington region. If you still fail to pay the statement of claim, lenders will issue a “writ of possession” and request an eviction. Having you out f the premises is the only way for banks to sell a property and recover their investment. The remaining money will be given to you as the power of sale does not give the title to property away. This is the main difference between a power of sale and foreclosure, which means you lose the home and all equity in it, giving free rein to lenders.
Faced with a power of sale or foreclosure you can either let the lenders do their legal bidding or try stopping the actions. Equity determines the appropriate action to take. You can get a new loan or sell the house to get the cash needed to bring a loan in default to good standing if there is enough equity left. If the debts in a home override its market value, any attempt to stop a power of sale must be under the guidance of a professional. If you have average equity like most people in Burlington, it is better to seek professional assistance in order to make the right decision. Lenders prefer the power of sale as it is much faster and cheaper than foreclosure, which can drag on for months or years. Successfully stopping a power of sale needs expert advice and fast action before the timer runs out and makes it impossible to stop.
It is not easy to identify such properties in the market, as there isn’t a common database as a reference. The law doesn’t require sellers to state whether a home is in power of sale or foreclosure, which makes the search more difficult. You can land a great deal with such properties but going in without full awareness of the rules concerning them could lead to major losses. Our main goal is to help sellers make the most cash from a property before it is taken away by banks and get buyers the best rates for the houses in foreclosure or power of sale.
It is wise to have a lawyer for such deals, as there are many rules to factor in. Fees involved in such deals are too high and often unpredictable, so parties cannot afford to make mistakes. A good lawyer will help you understand the implications of different terms and conditions that must be met by buyers of homes in foreclosure or power of sale. The lawyer will also ensure that you get the best value for your money.
