There are two legal remedies in Ontario when a borrower does not meet the terms of the mortgage. One remedy is the foreclosure the other is the power of sale. Most lenders use the power of sale in Ontario because it is faster and cheaper. Usually the lender will provide the borrower with a notice of default when the mortgage is at least 15 days in default. The borrower will then receive a statement of claim outlining any costs and terms that are required. As borrower and property owner it is usually in your best interest to stop the power of sale and bring the mortgage into good standing with as little cost a possible. If financing is required you can call our mortgage agent to arrange a loan.
If you are facing a possible eviction under a “power of sale” action we suggest that you contact a mortgage broker immediately. Our brokers can handle all the paperwork related to the power of sale in Ontario. The mortgage broker can arrange new financing to pay off any existing mortgages. The power of sale process can happen fairly quickly and the costs to the home owner can be quite substantial. Therefore the sooner you act to stop the Ontario power of sale the lower your costs will be. Try to provide the broker with as much information regarding the power of sale as possible.
When a property is put up for power of sale Ontario by a 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 market value. The selling price depends on 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. This can also reduce any further management or legal fees.
We advise our clients to seek legal advice on any matters regarding real estate. Please call us if you need any financing for your property or power of sale in Ontario.