A power of sale is the most common remedy used by lenders when a property owner is in default of their mortgage. An Ontario power of sale allows the lender to sell the property after the sheriff has evicted the homeowner. 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 power of sale process in Ontario 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 stop a power of sale with the required financing. We can also refer you to lawyers that provide FREE legal advice.
In most Ontario 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 them as possible. With all 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. Try to give your lawyer all the information whether good or bad. Financial 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. This ensures the property will get maximum exposure to potential buyers. The lender will try to get the maximum value when selling the house. 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. In this case the lender can sue the homeowner for any loss incurred by the power of sale.
We also advise you to seek independent professional legal advice on any matters regarding any property or real estate. Please call us if you need financing to stop a Ontario power of sale.