Facing a power of sale due to COVID-19 and many Canadian homeowners are struggling. When a Canadian homeowner has lost his/her job or a good part of his/her income, he/she could be struggling to pay the bills, loan payments, and mortgage payments.
The mortgagee (Bank) will start taking action in the form of Power of sale or foreclosure. Power of sale is used in Ontario, PEI, New Brunswick, and Newfoundland, and Labrador.
Facing a Power of Sale
While facing a power of Sale, Once a Canadian homeowner is fallen behind on your mortgage payments, the process of recovery begins. Defaulting on even one mortgage payment by 15 days, the Power of Sale process begins. Typically the lender (bank) mortgagee can make a call or send you a reminder that you are missing a mortgage payment.
The best thing is to take action immediately, seek help from your bank or call us at 1-416-409-7300 to see the options available for you. Do not ignore any letters from the bank or its lawyers otherwise you could become HOMELESS!
You will receive a Notice of Sale under Mortgage.
If you missed mortgage payments or, you will eventually receive a Notice of Sale by registered mail. This is the beginning of the Power of Sale process. You have 35 days before you face any further steps.
If the homeowner (mortgagor) does not pay what is owed prior to the expiry of the redemption period, the lender is able to issue a Statement of Claim for the collection of the Debt owed and for possession of the property.
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After the Statement of Claim is issued and served if the mortgagor does not file a Statement of Defense, the lender (bank) can sign default judgment. After signing default judgment the lender must then bring a court motion to ask the Superior court for leave to allow for the issuance of a Writ of Possession.
Once the Writ of Possession is issued by the court office the lender (bank) delivers it to the sheriff of the jurisdiction in which the mortgaged (homeowners) property is located. The sheriff schedules a date to evict (repossess) the mortgagors (the homeowner) and gives them an opportunity to move out of the house. The sheriff will ask the lender to bring a locksmith to change the locks and the homeowner loses possession of his own house.
Power of Sale Process
Please remember that the above discussion about the Power of Sale process is for information purposes only. The best way to avoid the power of sale and or foreclosure on your home is to make sure you keep up with your mortgage payments. And if you can’t, you may want to get in touch with Canadian real estate angel investors at 1-416-409-7300
It is always best to get legal advice in writing.
This article represents our views and not those of a legal expert.
Regardless of what stage you are at in the Power of Sale process, we can help you to find several options at no cost, no-obligation basis. ? For more information, please call or text us at 1-416-409-7300
Canadian homeowners can also sell their property to a cash home buyers fast for cash