Stopping Foreclosure and Power of Sale

Foreclosure is an unfortunate event and it can happen to anyone, even you.  The good news is, if you are still in your home but you’re already in foreclosure, you may be able to stop it.  Generally speaking, real estate lawyers or very specialized mortgage agents, are the only people who are qualified to explain what Foreclosure and Power of sale means and what might be done about stopping it as we have the experience and expertise to analyze all documentation to help you make an informed decision.
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These documents could include:

• Notice of Sale Under Mortgage

• Statement of Claim

• Writ of Possession

• Eviction Notice

• Judgments

• Court Orders

• Executions

Most of these documents are time-sensitive, so it’s vital to take immediate action, but to know what you can do to stop Foreclosure, you need to understand it.

Understanding Foreclosure

Foreclosure is a process wherein the lender has repossessed and gained title of the property in order to begin the process of selling.  This happens due to the borrower has failed to comply with the mortgage contract.

Most Common Reasons For Pending Foreclosure

Some homeowners’ willfully commit mortgage fraud. For instance if you don’t have intent to make your monthly mortgage payments, then this is considered to be mortgage fraud.  In other circumstances, foreclosure can occur due to unexpected life events that cause a change in your income and/or cash flow thus preventing you from being able to pay your mortgage.

In addition to Foreclosure, the Power of Sale process is also a common problem for home owners.

Understanding Power of Sale

Power of sale is the Forced sale of the property by the lender when the borrower is in default of one or several obligations of the mortgage agreement.  Unlike foreclosure, in this case, the borrower retains title of the property until it has been sold.  Once the lender has been paid in full and all other debts and fee’s related to the property and sale process are paid, if there is any remaining asset’s, the borrower receives the remaining portion.

This could leave you feeling like you have no other choice than to sell your home, however, there are programs available that enable you to pay off your current lender without being forced to sell.

In both cases, the sooner you take action, the sooner you can regain control over the situation.

How-to Avoid, Delay, or Stop Foreclosure or Power of Sale?

Most of the population are not aware of their rights when it comes to dealing with matters of foreclosure or power of sale.  There are a few ways you can avoid, delay and even stop it from happening, but you need to act quickly.  A few things you can do:

•Be proactive, notify your lender if you’re at risk for default (there may be programs they can offer to help you intermittently)

•Request extra time to make your payments or make affordable payment arrangements (also known as forbearance)

•Ask for modifications to your existing mortgage if it’s adjustable, such as changing your interest rate or amortization period to make it more manageable or reduce your monthly payments

•Check in with your mortgage broker to see if your default insurance can provide temporary protection

•Gather all legal documents related to the foreclosure or power of sale

•Find out what outcome the lender is hoping for, recovering their losses or taking your home

•Notify your lender if you are making an attempt to gather the money that is owed

•Seek mortgage and/or legal advice from a mortgage broker or lawyer

If you have found yourself in either of these positions, contact me to discuss your situation.  I can advise you on the best route to take and tell you all the options available to you.

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Meghan Van Houten – Mortgage Agent
416-709-9062
meghan@mountainviewmortgage.ca
Mountainview Mortgages
5038 Fairview Street, Burlington, ON L7L 0B4
Independently owned and operated
Lic# 12568