A power of sale (foreclosure) is when the bank or lending institution which holds your mortgage, takes the necessary steps to repossess you home for defaulting on the regular scheduled payments. It is not within normal practice for a bank to proceed with a power of sale (foreclosure) for missing one scheduled payment, rather it is the result of habitually missing payments throughout the regular term of the mortgage, or missing 2-3 consecutive payments in a row. In most cases, it isn’t common for a bank to issue a notice of sale until the maturity of the mortgage, at which point it is in their discretion to either renew your existing mortgage, or request a full payout. If your mortgage is mature and out of term bringing the mortgage back into good standing is usually no longer an option.
Within the time frame (usually 30 days), it should be an absolute priority to get in touch with a mortgage broker to seek out alternatives for financing. Often times, we have clients come to us days/weeks after being served the notice of sale. This can be a stressful time for anyone and at first it may seem easier to give up than seek out a solution.
It’s important to remember that there is a lot more work to do for a complicated deal such as this, and without sufficient time it may not be possible to meet the deadline. For all foreclosure deals that have come our way, Canadian Mortgage Services have been able to help clients in Brampton, Mississauga & Milton find a solution in nearly 95% of cases. Though the solutions themselves may not be cheap, the ultimatum is between paying more to keep your home (and sell at your own will if need be) vs. letting the bank repossess your home which is a much greater loss both financially and emotionally.
Contact us today for professional guidance with your Notice of Sale. Serving Brampton, Mississauga & Surrounding areas.
Q: What is a power of sale?
Q: Why won’t they give me more time?
Q: Do all types of lenders do this?
Q: Is there anything I can do to stop a power of sale?
Q: What if I give in and just let power of sale happen, will I lose all my equity?
Having said that, you worked very hard to own your home, including the initial down payment and principal payments made over the years. You should never take a passive approach or sit back, while the bank steers the ship. Take action because although a power of sale is an expensive road to travel, it has far greater tolls if you don’t try to take the earliest exit possible.