There are two remedies available to lenders in Ontario when a borrower does not meet the terms of the mortgage, a common reason for default is usually non-payment of the mortgage. One remedy is the foreclosure the other is the MLS power of sale, most Ontario lenders use the MLS power of sale Ontario process because it is faster, cheaper and has less court involvement. 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 to bring the mortgage into good standing. As borrower and property owner it is usually in your best interest to bring the mortgage into good standing with as little cost a possible, work with your lender to keep legal costs low. If financing is required you can call our mortgage agent to arrange a loan.
If you are facing a potential “power of sale” situation we suggest that you contact a lawyer and a mortgage broker. Provide your lawyer and broker with all information regarding the property, including any notices from the lender and any liens. The more information that the lawyer and broker have the faster they can help you, provide any documents such as notice or a statement of claim. A MLS power of sale can result in your home being sold within a short period of time; therefore we recommend that you act to prevent any further legal action.
Lenders have a duty to get the highest price for any property put up for MLS power of sale. Most lenders sell the property through a multiple listing service which allows the maximum number of potential buyers to see the property; this should result in the highest selling price for the property. However, there are many factors that affect the price of a house, the present real estate market could be down or the carrying costs of the property could be very high. These factors may force the lender to sell your property at a price well below market value. As the property owner you should also be aware that the lender has the right to sue you if there are any losses resulting from the sale of the property.
Our mortgage brokers and mortgage agents do not provide legal advice for any mortgages or any other financial transaction. We recommend that all our clients retain independent legal advice to complete all real estate transactions. The legal system can be fairly fast in the MLS power of sale process therefore we advise all clients to react promptly to any letters or notices from the lender or their legal representative. The borrower has the right to pay off the mortgage or rectify any default in the mortgage during the power of sale process. Our mortgage agents can help with any mortgages or MLS power of sale situation, we can tell you within minutes if you can qualify for a loan, call us today for a free consultation.