Kevin & Kerri-Ann Associates Facebook ad: “Power of Sale”

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25405106312523524

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Facebook, Instagram and Audience Network

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Power of Sale We are going to see more and more of these. It's going to be a very challenging year for some people. So what is a Power of Sale? Power of sale is the most common forced sale process used in Ontario when a homeowner fails to repay their mortgage. In a power of sale, the lender obtains the legal right to sell the property to recover funds owing (plus legal fees, etc.). Any remaining funds are credited back to the borrower. Clients often ask if we know of any "power of sale properties." The misconception, and the reason people are often attracted to power of sale properties, is because they expect to get a deal. But it’s not a “fire sale” type of situation. In fact, banks are obligated to get market value for the property. Buyers must understand that the property is being sold "as-is." The banks include a very detailed schedule for the MLS listing, and the terms are not negotiable. There is a very clear process for Power of Sale after a homeowner defaults on their mortgage. The steps are: Step 1: The borrower defaults on the mortgage. The power of sale process begins after the borrower breaks the terms of the mortgage agreement. Step 2: The lender delivers a Notice of Sale and Related Notices. The lender must wait at least 15 days after the default to deliver a Notice of Sale Under Mortgage. Step 3: The borrower is given time to pay off the mortgage debt. The waiting period after the Notice of Sale is delivered is referred to as the redemption period. The borrower must bring the mortgage into good standing. Step 4: The lender applies to take possession of the property. Step 5: The lender evicts the homeowners and takes possession of the property. Once the homeowners are evicted, the lender will proceed to sell the home. Step 6: The property is sold, and the proceeds of the sale are disbursed. The proceeds are paid out in a specific order when the sale is complete. If you have any questions about Power of Sale properties. The process or how to acquire a Power of Sale property, please connect with us. We'd be happy to explain and assist. k&ka