How To Stop A Power of Sale In Ontario
Normally, missing a few payments on your mortgage will result in your lender placing your property into what is known as a “Power Of Sale“
This is the most common method for mortgage lenders in Ontario to recover their money, although most homeowners aren’t aware of the various options available to them.
Power Of Sale vs. Foreclosure
Most people tend to confuse the concept of “Power of Sale” with “Foreclosure“, which are completely different legal processes:
- A Power of Sale takes around six months to process and allows the lender to sell the property.
- A Foreclosure takes over a year to process and gives the lender ownership of the property.
In a Foreclosure, the lender takes the property, along with all of the equity, but in a Power of Sale any excess profits from the sale must go to the homeowner.
However, the amount of the total legal bill for completing a Power of Sale can be in excess of $30,000.00, which can quickly reduce the profits that would have gone to the homeowner.
The good news in all of this is that there are several options available to homeowners which can either allow them to keep the home or make more money off the property’s sale.