If you need help to stop the power of sale process on your property, Burke Financial can help.
Our priority is to ensure that you maintain control of your property even if you’ve had some trouble making mortgage payments or owe mortgage arrears. 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.
So whether you’re facing foreclosure in Ontario or power of sale in Toronto, trust Burke Financial to get you through it. We can help!
What is Power of Sale?
When a borrower fails to make the agreed-upon payments on their mortgage (goes into default), a mortgage lender has the option to begin a power of sale process to recoup their money.
A mortgage default usually occurs when the borrower fails to make regular payments, but it can also occur 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 the borrower doesn’t have adequate property insurance.
When faced with the power of sale, Ontario residents can be evicted and see their homes sold in order to pay the mortgage lender the principal amount that was originally loaned, plus interest and related expenses and fees.
Luckily, there are several effective methods you can use to stop the power of sale process once you have defaulted on your mortgage, and Burke Financial is well-versed in all of them.
Don’t let the power of sale process scare you – we’ve got your back!
How Does the Power of Sale Process Work?
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 of the law to our advantage, and help borrowers behind on their payments by stopping a power of sale from occurring.
A Complex Process
First, the lender must contact the borrower. Usually this is done in writing. The point of this first step is for the lender to notify the borrower that they are in default, and to give them a chance to fix the problem.
Next, if the situation is not properly taken care of, the lender delivers 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 parties in the mortgage agreement, including creditors.
At this point, the lender cannot take any further action for 35 days. If the property is occupied by a married couple, the lender must wait 40 days. This is called the Redemption Period. During this redemption period, all mortgage arrears must be paid so that the mortgage is brought into good standing. If the mortgage is due, then the borrower must pay off the entire mortgage debt (which includes any of the lender’s legal fees).
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 a State of Claim in order to collect any owing amounts, and to take possession of the property.
If the 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 (and the physical removal of the borrower from the property) can the lender sell the property to recoup his or her losses.
This means there is plenty of time for Burke Financial to help.
How Can I Stop the Power of Sale Process?
At Burke Financial, we can help get lenders off your back, and put you back on the road to financial security and stability. If you need to stop power of sale proceedings on your home, there are a number of methods we can use.
Finding the appropriate method for your specific situation is our specialty, but generally speaking, each of the methods available to stop power of sale proceedings will involve paying the lender a specific amount of cash.
Two of the most popular ways we can disrupt the power of sale:
Placing a new second mortgage on the property in question
Replacing the mortgage with a new mortgage
The most straightforward way to get money to stop the power of sale is to place a second mortgage on the property.
The money from the second mortgage should be enough to pay any arrears and fees, and bring the first mortgage back into good standing. If you’ve been turned down for a second mortgage, or if the lender is requesting the full mortgage amount, then you should try to replace the mortgage with a new one.
The new mortgage amount needs to be enough to pay off the entire principal of the old mortgage plus arrears and fees. At Burke Financial, we can replace the mortgage in arrears with a brand new mortgage to stop the power of sale and get you back on your feet.
Let Us Help You Find Your Way
The experts at Burke Financial can provide you with the very best techniques to stop power of sale processes, and they’ve been trained to use every power available under the law to help you do so.
If you’re facing an uncertain situation and worry about an approaching a power of sale situation, call us. Even if you’re already in the middle of a power of sale, there are solutions available, regardless of how far along you are in the process.
It’s always best to consult with experts on these matters, so get in touch with Burke Financial today.