There are two legal remedies available to lenders in Ottawa when a borrower is in default of the mortgage. One legal remedy is the foreclosure process the other is the power of sales process, most lenders in Ontario use the power of sale Ottawa process because it is faster and cheaper. Lenders will send the borrower a notice of default when the loan is at least 15 days in default, if the default is not corrected the borrower will then receive a statement of claim outlining the terms required to bring the mortgage into good standing. As the Ottawa property owner it is usually in your best interest to bring the mortgage into good standing, work with your lender to keep legal costs low. If alternative financing is required call our mortgage agents to arrange a loan.
If you are facing a potential power of sales in Ottawa we suggest that you contact a lawyer and a mortgage agent. Give the lawyer and agent information regarding the property, including mortgage papers, property taxes, notices from the lender, statement of claim and any liens. The more information that the lawyer and broker have the faster they can help you. A Power of sale can result in your house being sold within a very short period of time; therefore we recommend that you act quickly to save your house and stop any further legal costs by the lender.
Lenders want to get the highest price for any Ottawa house or property put up for power of sale. Lenders will usually list the house with a multiple listing service which allows the maximum number of potential buyers to view the house; this should result in the best offer for the house. However, there are factors affecting the price of a house, the local real estate market could be down which reduces the value of your house or the carrying costs of the property could be very high and the lender is force to sell due to the high carrying costs. These factors or others can force lenders to sell your house below a reasonable market value. As the owner of the house in Ottawa you should also be aware that lenders have the right to sue you if there is a loss on the sale of the property.
Our mortgage brokers and mortgage agents are not lawyers and we do not provide legal advice for any mortgages or any other financial transaction. You acknowledge that all information provided by this website or our mortgage agents do not represent a legal opinion. Real estate transactions involve large amounts of money therefore we recommend that all our clients retain independent legal advice to complete all real estate transactions. If your property is in the power of sale Ottawa, Ontario process, we advise you to react promptly to any letters or notices from the lender. Borrowers have the right to pay off the mortgage or any default in the mortgage during power of sales. Call our mortgage agents today for a free consultation; they may be able to help with mortgages or a power of sales in Ottawa.