In Ontario a power of sale is the most common legal tool that lenders use to recover money when a borrower goes into default. The power of sale process can be completed within a couple of months at which point the owner is evicted and the house is sold.
A power of sale will typically result in the property being sold for the market value. The property can also be sold for a price well below market value if the property needs to be sold quickly. The proceeds of the house sale will be used to pay all outstanding bills. The original owner will receive any money left over after the bills are paid.
A power of sale could be started after the particular mortgage has defaulted for in excess of 15 days. The lender must forward a letter to the homeowner. The homeowner has about 35 days to help acknowledge the “Notice of Sale Under Mortgage”. If there is no response a “statement of claim” will be issued. The “statement regarding claim” will outline the many costs accompanying settling the mortgage. Including the mortgage key, land taxes due, lawyer fees and also any added fees or some other fees that are unique to the city. When the “statement of claim” is not paid the lender can issue a writ of possession and the request an eviction.
Are you facing a possible foreclosure, power of sale or eviction from your home? Would like more information regarding your options and how to stop the foreclosure of your home? If the answer is yes, then you should call 416-499-2122 for a free consultation.
Our services include contacting a mortgage agent to replace existing mortgages, communicating with the lenders lawyer, arranging lawyers for our clients, assigning a real estate agent to sell the home, filing documents to delay the power of sale process and evictions. Every power of sale or foreclosure is different therefore we suggest that you call us to get a better idea of what options you have.
