A Power of Sales method (and in cases of a Foreclosure) allows a mortgage lender to sell the property of a borrower if the borrower is in breach of one or more of the stated mortgage conditions. Notably, “mortgage arrears” and non-payment of the mortgage is the most common of all such breaches. In any occurrence, it is wise to contact us at Expert Mortgage so that we may act immediately to stop power of sale, which is a legal process and help you to retain the possession of your home when dealing with a Power of Sale matter.
For more than two decades, our team has been upfront in refinancing and stopping the Power of Sale process for numerous clients, which in many cases included situations related to tax arrears and mortgage default payments. We have accrued EXCELLENT credibility among our Private investors and lawyers representing the banks and large financial institutions where resolving the Power of Sale for our clients is concerned. Having credible links with investors and lawyers helps grant more time to provide you with an array of options to stop power of sale in Ontario, hence ensuring several benefits for your cause:
It is important to know that paying off your first mortgage prior to maturity can at times cost you a fortune. Expert Mortgage often performs debt consolidation and provides a second mortgage that matures at the same time when the first mortgage matures. When both mortgages reach maturity, we may combine them together and hence, do our very best to save you even more money.
When a borrower misses a mortgage payment, a lender can put a person in power of sale 15 days after the payment is missed. Lenders might use a legal process called a power of sale to reclaim their investment. The lender sells the property on the open market to pay off all obligations through a power of sale. Any extra profits must be transferred to the homeowner once the property has been sold. This is in contrast to the foreclosure procedure, which grants the lender ownership to the property while leaving the homeowner with nothing. Because it is often faster and has fewer fees than foreclosure, power of sale is the most commonly used legal process in Ontario. In most Ontario mortgage contracts, a condition says that all expenses incurred when administering the mortgage would be charged back to the mortgage. This means that any legal fees incurred while the power of sale was in effect are credited back to the mortgage. Because these fees can be as high as $30,000, it is strongly advised that the homeowner try to halt the power of sale as quickly as possible.
In the vast majority of circumstances, the best way to resolve a power of sale problem is to pay the lender the money they are owed. Several factors influence how much money is paid, when it is paid, and where it comes from. The amount needed to stop the power of sale can be either the amount owed plus fees or the total amount owed plus fees. The homeowner has up to 40 days after receiving a Notice of Sale letter to pay the arrears plus costs. The mortgage can be continued normally if the borrower pays this amount and the mortgage term has not expired. The lender can then request the total value of the mortgage plus costs after this 40-day period (known as the redemption term). If you don’t have the cash on hand, you might look for financing through a private mortgage lender. A person in power of sale cannot get a loan from most banks or other traditional lenders. Many private lenders specialize in high-risk financing and are willing to ignore legal issues as well as income and credit score concerns.
A private lender’s mortgage can be utilized to pay off the lender who is threatening to sell the property and terminate the legal procedure. Once the new mortgage is in place, the private lender can work out a deal with the existing lenders and pay them directly to avoid legal action. The Loan to Value (LTV) ratio must not surpass 85% for most private lenders to approve a mortgage. The value of the mortgages secured against a property is divided by its appraised value to determine the LTV ratio. The LTV ratio is equal to 85 percent for a property valued at $1,000,000 with $850,000 in mortgages. When a private lender calculates an LTV ratio for a property, the value of the requested mortgage plus fees is always included. A private lender’s mortgage fees normally range from 2% to 5% of the loan amount. The mortgage can be structured in a variety of ways, including as a first mortgage, a second mortgage, or a multi-property blanket mortgage.
Most individuals are hesitant to sell a home to which they have been attached, yet it is often the wisest decision. If you are unable to obtain private lender financing and must sell the property under power of sale, the property will likely not sell for its full worth, and any profits will be reduced by the costs. You may control the timetable of the sale, the selling price of the property, and avoid many of the fees associated with the power of sale by selling the property yourself. If you need to sell quickly, you may have to sell at a discount, but cutting the sales price is usually preferable to allowing the lender to sell it.
Stopping a power of sale on your own can be difficult, so you might benefit from the advice of a specialized mortgage broker. A mortgage broker that understands the sales process will be able to rapidly lay out your options and recommend the best lenders for your situation. Our team at Expert Mortgage has over a decade of experience in preventing foreclosures and power of sale sales, and we can discuss your options with you for free. The first thing we do is listen to your issue, determine where you are in the power of sale process, and provide you with a timeline and potential remedies. We can tell you right away if you’ll be able to get financing or if you should sell the property. Call 1-800-513-6469 or email firstname.lastname@example.org for free guidance.
You may have assumed that defaulting on your mortgage payments would never happen to you. Life has a habit of making decisions for us. For many Ontario homeowners, the ongoing Covid-19 outbreak has been a financial burden. Toronto’s prices are already among the highest in the country. The average home price in Toronto has topped $1 million for the first time, at 932,222 thousand dollars. This year’s average housing price is up 11.2 percent from this time last year, while the Covid-19 outbreak was still raging.
Economic constraints have forced some homeowners to fall behind on their monthly mortgage payments, even if they live outside of the GTA. According to current statistics, 2,301 homes have fallen behind on their payments, accounting for 0.11 percent of all owned properties in Ontario.
It is recommended that you do everything possible to avoid a power of sale on your house. It is beneficial to be aware that the entire process takes time due to the several steps involved. To legally proceed with a power of sale on your home, your lender must follow these steps.
1. Sell your property in its current state – Some Ontario purchasers will be able to buy your home in its current condition, saving you time and money on renovations and repairs. Before the power of sale process is completed, your property can be sold in as little as a week.
2.Take out a private consolidation loan– In Ontario, there is a large network of well-established and skilled private lenders who can help you with private mortgage loan alternatives regardless of your credit situation. The interest rates on these private loans will often range from 7% to 10%, with fees ranging from 3% to 6% of the overall loan amount. Any loan that is arranged will not exceed an LTV of 85 percent, or 85 percent of your home’s assessed value.
3.Seek counsel from a mortgage expert– Ask all of the pertinent questions. Learn everything there is to know about the power of sale. Seek guidance on the best course of action. When it comes to the complexity of the power of sale process, private lenders are readily available to assist Ontario homeowners. We have access to a wide range of well-established and experienced private lenders across the province who can negotiate a variety of private mortgage loan options ranging from debt consolidation loans to Home Equity Lines of Credit at Expert Mortgage.
Private mortgage loans will allow you to pay off any outstanding mortgage debt and ensure that your mortgage payments are securely covered in the future. Please contact us at your earliest convenience to discuss your options for stopping any power of sale on your prized and cherished house.