What will happen to me, the homeowner?

Stop Power of Sale TorontoThe homeowner is put under a great deal of stress in a Power of Sale situation. Once the mortgage holder is in charge they will have the power to evict you from your house by the Sheriff. The mortgage holder will take possession of your house and then sell it. There is a possibility that you will be able to call off the Power of Sale by bringing the mortgage back into good standing before the sale of the house closes. If you want to call off the Power of Sale you will need to find someone to lend you the money you require, which can prove to be difficult.

What is a Sheriff?

A Sheriff is an officer of the court and is authorized to remove you and your family from your home with an order provided by the court. The Sheriff will give you a written notice prior to the eviction. The notice will include the date and time of the eviction. A Sheriff’s notice can only be cancelled by the person who issued it.

What will happen if the house does not sell for enough money to pay off the Mortgage?
In a Power of Sale situation the mortgage owner might not be able to sell the house for enough money to pay off the mortgage owed to them. If this occurs you could very well find yourself in a situation where you are being sued. You need to check if you have mortgage default insurance.

How will your house be sold?

You house will be sold in “As Is” condition by a Real Estate Agent chosen by the mortgage holder. It will not be staged for sale or prepped as you may have done yourself if you sold the house. The mortgage holder is required to try to get market value for the house, but there are risks when a buyer puts in an offer on an “As Is” house that is being sold under Power of Sale.

Why should you put a STOP to the Power of Sale?

You worked hard to save a down payment and put a great deal of thought, time and energy into buying your home. Many people face problems in life that cause them to sell their home such as unemployment, illness and divorce. The fact that you are facing a situation that caused you to default on your mortgage does not mean you should hand over control of your home to the lender. It is important to take control of the situation to prevent having the lender sell your house.

Put yourself in control of selling your house so you can do everything in your power to get the highest price for the property.