No home owner wants to hear the words “Power of Sale” when it comes to their home. Power of sale is a process started by the Bank, when the home owner falls behind paying their mortgage due to loss of employment or health reasons. In all my years of experience in the Mortgage and Real Estate Industry, I never met a home owner who did not want to pay his or her bills. No one wants to be in a power of sale situation. But unfortunately, sometimes circumstances create such conditions where a home goes into power of sale.
What homeowners need to always remember is that as soon as you sense that you are falling behind, speak to a Mortgage Professional who can discuss all your options with you. Don’t wait. Every day you wait, you could end up making the situation worst.
GTA Mortgage is here to help. If your home or condo located in the GTA mainly Toronto, Mississauga, Brampton, Oakville, Milton, Burlington, Hamilton, Markham or Pickering, is in foreclosure or bank or a private lender is threatening a power of sale proceeding against your property, GTA Mortgage Centre might be able to help. We have a list of private lenders that we work with that could lend you the additional funds, given that you meet certain requirements and your property has equity based on an acceptable LTV (loan to value). Contact GTA Mortgage so that we can access the situation and get you the answers you are looking for.
Power of Sale
A power of sale is a clause in a mortgage agreement that gives the lender, typically a bank or financial institution, the right to sell the property without going through the court system in the event that the borrower defaults on the mortgage loan.
In a power of sale, the lender has the power to take possession of the property and sell it in order to recover the outstanding balance of the mortgage loan. The lender must follow certain legal procedures and give the borrower notice of the sale before proceeding with the sale.
The main difference between a power of sale and a foreclosure is that a power of sale does not involve the court system, which can make the process quicker and less expensive for the lender. However, the borrower may have less protection under a power of sale, as there may be less oversight and fewer opportunities to challenge the sale.
It is important to note that the laws governing power of sale vary by jurisdiction, and borrowers should seek legal advice if they are facing foreclosure or power of sale proceedings.