Power Of Sale Mortgage
If you have fallen behind on your mortgage and have been unable to make any payments for more than two months, your bank/lending institution may give notice of its intentions to exercise a Power of Sale. This process allows the lender to sell your home or property, using legal/court proceedings, as a way of rectifying a default by the borrower – in other words, an action undertaken to recover its funds.
In the mortgage contract, a clause is generally included that authorizes the lender to sell the property if the borrower defaults on the payments and/or breaches the terms of the contract. Once the lender has issued a Statement of Claim, registered with the courts, the borrower usually has four to six weeks to remit the missed payments and negate the mortgage default and the Power of Sale.
Can You Overcome a Power of Sale Notice?
There are several reasons why people fall behind on their mortgage payments, to the point that a Power of Sale is initiated by a lender.
The default may be due to an unforeseen or unavoidable situation, or result from personal financial mismanagement:
- Unexpected loss of employment or decrease in income
- Inconsistent income stream due to self-employment
- Change in marital status/support payments
- Major medical or legal expenses
- Undisciplined management of finances or credit cards
- Identity theft
Whatever the circumstances, a Power of Sale is a serious action on the part of the lender and one that requires immediate attention – from yourself and an experienced mortgage professional. Failure to address such a notice within the specified period of time can lead to the loss of your home or property and to significant legal fees. The team of experienced professionals at Mortgage Intelligence are knowledgeable and skilled in arranging the financing/refinancing that you will need to pay off your arrears, get your finances back on track, and nullify the Power of Sale.
- Advise you of your legal rights
- Locate another lender willing to refinance your current mortgage, or
- Help you obtain a second mortgage, and
- Negotiate a more affordable payment plan for either scenario
Tip:If you are currently in arrears on your mortgage payments and/or are concerned that your present financial situation will prevent you from meeting those obligations in the months ahead, speaking with an experienced mortgage professional will be time well invested. Together, you may be able to devise a refinancing strategy or plan that could stop a Power of Sale – before it is ever issued.
At Mortgage Intelligence, we have established partnerships with more than 50 lenders across Canada, including major banks, credit unions, trust and insurance companies, and other national, regional, or private lenders. This gives us a wide range of possibilities to investigate on your behalf in order to find the type of financial relief and/or flexibility that you need to retain your home or property.
Natasha and her team of experienced brokers at Mortgage Intelligence will work diligently to answer all of your questions, find the best refinancing option for your present situation, and give you peace-of-mind moving forward.
For further information on how we can help with Power of Sale refinancing, contact Natasha and her team of private mortgage brokers today. Call us at 1-866-553-7467 ext 221 or 905-851-8871 ext 221.