Ontario Power of Sale training
Ontario Power of Sale training for real estate owners, professional real estate investors, mortgage brokers and realtors.
What is a Power of Sale?
When a homeowner stops paying their mortgage and defaults on the loan, a power of sale by the lender allows the home to be sold to pay back the mortgage. There are other ways for homeowners to default on a mortgage besides not making their mortgage payments.
Latest headlines in the media
Tens of thousands of Canadians could default on mortgages due to rising rates, bank CEOs say -Toronto Star
Mortgage defaults and foreclosures on the rise as interest rates climb ~ Financial post
Mortgage defaults and foreclosures on the rise as interest rates climb ~ Vancouver Sun
Basics of a Ontario Power of Sale training
A power of sale is the most common forced sale process used in Ontario when a homeowner fails to repay their mortgage. In a power of sale, a mortgagee (the lender in a mortgage) obtains the legal right to evict residents of a property and sell the property to recover funds owing.
Canadian banks or lenders prefer the power of sale over foreclosure because the process is faster, involves less court time, and legal costs are lower. A lender need only wait 15 days after a missed payment to begin a power of sale process.
Ontario power of sale process in brief:
- Lender obtains right to sell
- Can begin as soon as 15 days after the first missed payment
- No court involved in Notice
- Redemption period (usually 35-40 days) during which you can bring the mortgage current
- Lender has a duty to sell for fair market value
- Equity or profit paid to the borrower
eneral guide to the subject matter.