Power of Sale Solutions in Ontario

    Burke Financial is an award-winning Mortgage Brokerage committed to helping homeowners maintain control of their properties. Even if you’ve had some trouble making mortgage payments or owe mortgage arrears, we have the resources to STOP Power of Sale proceedings in their tracks and have done so using several tried-and-true methods.

    We go to bat for our clients across Ontario. Whether you’re facing foreclosure in Ontario or a Power of Sale in Toronto, Burke Financial can help. Learn more about what we can do to help you stop the Power of Sale process.

    Power of Sale Solutions in Ontario 1
    Power of Sale

    Power of Sale

    When a borrower fails to make the agreed-upon payments on their mortgage, a mortgage lender has the option to begin a Power of Sale process to recoup their money. A power of sale can seem daunting, but it doesn’t have to be.

    A Power of Sale can also happen if the borrower is using the property for an illegal purpose, if they have not kept the property in good condition, haven’t paid their property taxes, or if they don’t have adequate property insurance.

    When faced with a Power of Sale, Ontario residents can be evicted and see their homes sold in order to pay the mortgage lender the principal amount they initially loaned. This amount includes interest and related expenses and fees, which can add up quickly.

    Luckily, there are several effective methods you can use to stop the Power of Sale process, and Burke Financial is well-versed in all of them.

    Stopping a Power of Sale

    Stopping a Power of Sale on your home can be a complicated process unless you have a team of experts on hand to guide you through every step.

    For a lender to proceed with a Power of Sale, they have to follow a relatively strict process. At Burke Financial, we use our expertise and knowledge to help borrowers behind on their payments by stopping a Power of Sale from occurring. We can help get lenders off your back and put you on the road to financial security and stability.

    Our team has the experience to STOP Power of Sale proceedings in their tracks and can do so using a number of tried-and-true methods.  We help stop Power of Sale proceedings across Ontario.

    Here is what you can expect to experience during Power of Sale proceedings:

    Stop Power of Sale
    Contacting the Borrower


    The first step in Power of Sale proceedings in Ontario is contacting the borrower. Typically, this step is done in writing. This point of contact notifies the borrower that they are in default and gives them a chance to fix the problem.

    Notice of Sale


    If the situation is not taken care of, the lender will then deliver a Notice of Sale via registered letter, as well as notice under the Bankruptcy Act. This can only be done 15 days after the borrower has gone into default and no sooner. According to the Ontario Mortgages Act, the notice of sale must be sent to all appropriate mortgage agreement parties, including creditors.

    Redemption Period


    At this point, a lender cannot take any further action for 35 days. If a married couple occupies the property, the lender must wait 40 days. This is called the Redemption Period. During this redemption period, all mortgage arrears must be paid to bring the mortgage into good standing. If the mortgage is due, the borrower must pay off the entire mortgage debt (including any of the lender’s legal fees). This can be done by using a debt consolidation loan.

    State of Claim


    If the borrower cannot pay the lender the appropriate amount during the redemption period, the Power of Sale moves to the next step. At this point, the lender issues the State of Claim to collect any owing amounts and take possession of the property.

    Statement of Defense


    If a borrower does not file what is called a Statement of Defence, the lender can obtain a Default Judgement, have a Writ of Possession issued, deliver that writ to the appropriate authority in the jurisdiction where the property is located, and that authority (sometimes a Sheriff) will arrange for an eviction.

    Only after all of these steps are taken (and the physical removal of the borrower from the property) can the lender sell the property to recoup their losses.

    Why Choose Burke Financial

    At Burke Financial, we specialize in communicating with lenders on behalf of our clients and delivering the best techniques and resources to combat a Power of Sale in Ontario. When it comes to protecting your home and your family, we leave no stone unturned. Our Mortgage brokers are available on-hand to put a stop to this process and ensure you remain in your home.

    We are a customer service leader, and we’re committed to creating a positive and stress-free experience for our clients. Your home is an essential part of your story, and you deserve to continue writing.

    Don’t stress over losing your home. Let the experts help. Get in touch with Burke Financial today.

    Top Choice Award Brokerage of the Year 2021
    Better Business Bureau A Accredited Business
    Canadian Mortgage Brokers Association Member

    Contact Us Today

    Feel free to contact us anytime with any questions that you have. We are here to help every step of the way!

    388 Granton Drive (Unit 1)
    Richmond Hill, ON L4B 1H7
    Brokerage # 13111
    Email: [email protected]

      Frequently Asked Questions About Power of Sale

      The Power of Sale process is an option that lenders can choose to pursue if a borrower defaults on their loan by failing to make the agreed-upon payments on their mortgage. A mortgage default usually occurs when the borrower fails to make regular payments.

      A Power of Sale can also occur if a borrower uses a property for an illegal purpose, if they have not kept the property in good condition, haven’t paid their property taxes or if the borrower doesn’t have adequate property insurance.

      To avoid eviction, borrowers can choose one of two straightforward options with the help of a mortgage brokerage. Typically, each of the methods available to stop these proceedings will involve paying the lender a specific amount of cash.

      Whether you choose to place a new second mortgage on the property in question or to replace the mortgage with a new loan, we’ll help you through every step of the process. Burke Financial specializes in helping homeowners stop a Power of Sale to avoid losing their homes.

      Halting a Power of Sale in Toronto and other cities across Ontario takes time and diligence. Before any action can be taken, a lender must inform the borrower that they are in default. If the outstanding payments have not been made, a notice of sale is sent, followed by a notice placed under the Bankruptcy Act. The lender is required to then wait 35 days before taking further action.

      All mortgage arrears must be paid to bring the mortgage into good standing during the redemption period. The borrower must then submit a defence statement and begin the final process.

      If this sounds confusing or problematic, Burke Financial can help you through the process. We work tirelessly to keep you in the home you’ve earned.

      Canadian lenders have the legal right to take possession of your property using either a Power of Sale or a foreclosure process if you’ve been unable to make mortgage payments or owe mortgage debts. Each province will follow either a Power of Sale or foreclosure process. These processes can result in two very different outcomes, so it’s essential to know whether your province will implement a Power of Sale or foreclosure.

      In Ontario, you will undergo a Power of Sale. During a Power of Sale, the lender can evict anyone living in your property and sell if you’ve defaulted on your mortgage. The property must be sold at fair market value, and the owner is entitled to receive any profits after any repayment fees or accumulated debts.

      In other provinces such as British Columbia, however, a foreclosure is the default process. In this case, the lender may take the property’s title. First, the lender must sue the borrower in court. If the judge grants permission to sell, the homeowner is no longer entitled to any sale profits.

      Burke Financial specializes in putting homeowners in the most secure financial position, including halting any power of sales and potential evictions.

      With our extensive resources and years of experience, we can help get lenders off your back and put you back on the road to financial security and stability.