If you have power of sale condos then you should understand the power of sale process. Lenders must wait 15 days before noting your loan or mortgage in default and must send you a letter notifying the borrower that they are in default. The lender will, at a later date, provide a statement of claim outlining any monies owed and any terms to be fulfilled. The legal cost of a power of sale condo can be expensive and every delay can add to the cost of settling the claim. Borrowers are advised to use a lawyer to ensure that the default is settled quickly with minimum costs. Remember in the power of sale condo process the property owner has the right to pay off the debt at any time during the power of sale process. If you need financing contact our mortgage agent to arrange a loan.
When facing a power of sale situation you should retain a lawyer and provide him/her with as much information regarding the power of sale as possible. We have access to lawyer that can help you with free legal advice. Important documents would include a statement of claim, mortgage papers, liens and any other letters or notices. Many lenders charge a daily management fee and legal costs can be quite high, therefore it is in the homeowner’s best interest to stop the power of sale as soon as possible. In many cases the homeowner will also need the service of a mortgage broker to arrange new financing for the property.
When a power of sale condo is put up for sale by the lender, the lender usually uses a real estate agent with access to a multiple listing service to sell the property. The actual selling price of the property could be higher or lower than the estimated market value depending on such factors as the condition of the property and ongoing carrying costs. In most cases we advise the property owner to try and stop the power of sale condo as soon as possible, this can also reduce any further management or legal fees.
Whenever you buy, sell or place a mortgage on any real estate you should have a lawyer complete the transaction. As mortgage brokers and mortgage agents we do not represent ourselves to be legal experts and recommend that our clients receive independent legal advice. The power of sale Canada process can be more complex than most real estate transactions; therefore having a lawyer familiar with the power of sale process can save time and money. Remember as the property owner you have the right to correct the default and bring the mortgage back into good standing. Call our mortgage agents for your mortgage or power of sale condos requirements.