Bank Power of Sale – Ontario, Canada
A bank power of sale is the most common remedy used by lenders when a property owner is in default of their mortgage. A bank power of sale allows the lender to sell the property or house after up for sale. The main cause of a default on a mortgage is non-payment of the mortgage; other factors may be not having the property properly insured or not maintaining the property. To stop the bank power of sale process against your property you will need to rectify the problem causing the default such as paying off any outstanding claims against the property. Our mortgage agents may be able to help you with the required financing. In most bank power of sale situations the process can take several months and generate a substantial amount of paperwork. When meeting with your lawyer take as much of the paperwork to him/her as possible, let your lawyer decide which items are important. With all bank power of sale procedures time is of the essence, there is usually a daily charge for management of the property and you want to minimize all costs. If you have already been evicted by the sheriff and do not have access to the information, there should be a notice posted on the front door of the property indicating who to contact. Try to give your lawyer all the information whether good or bad, not telling the truth and surprises will hurt your chances of recovering your property. If you have been served a statement of claim and evicted by a sheriff in Ontario then your property will be put up for sale within a short period of time. Most lenders will list the property on the MLS listing service, that way the property will get maximum exposure to potential buyers. The lender will try to get the maximum value when selling the house but if there are no offers within a reasonable amount of time the lender may lower the price until the house sells. The actual selling price may be substantially below the present market value and since the lender is under financial pressure, the lender could also lose money upon the sale of the house. The homeowner should be aware that the lender can sue the homeowner for any loss incurred by the bank power of sale. Legal Disclaimer We strongly recommend to all our clients to hire a lawyer that is familiar with real estate transactions whenever they are buying, selling, mortgaging their property or in a power of sale situation. Lawyers are needed to complete paperwork regarding mortgages, liens, change of ownership, etc. for most real estate transactions and with power of sale situations the legal process is usually more complex than the regular sale of a house. We are not lawyers therefore you acknowledge that information provided in this website shall not be construed as expert legal advice. We also advise you to seek independent professional legal advice on any matters regarding any property or real estate that you own. Please call us if you need any financing for your property or bank power of sale.