How to Prevent a Power of Sale
What is a Power of Sale and How Can it Be Stopped
When a homeowner fails to make their mortgage payments, their mortgage lender can use the
power of sale
process to sell the mortgaged property.
The proceeds from the home sale are used to pay off the mortgage lenders and any remaining money goes back to the former homeowners. In this case, the homeowner is still in control of their property and may be able to resolve the situation before their lender sells their home. When a lender uses a power of sale they incur legal fees which are charged back to the mortgage. This means that the legal bill will increase as each step in the power of sale is processed. In order to get the most money out of their home, a homeowner must work to stop the power of sale as soon as possible.
How Can a Power of Sale Be Stopped
With a power of sale the homeowner has a few options but must work quickly to avoid increasing legal fees. The first thing you should do is try to contact the mortgage lender. In some cases, the mortgage lender will be able to get you a new mortgage or modify the existing mortgage in order to take you out of the power of sale. Sometimes the mortgage lender is not willing to talk with you and refers you to their lawyer. This means that you must now resolve the situation with the lawyers instead of the lender directly. The main ways to remedy the power of sale situation are to either get a new mortgage or to sell the home yourself. Many
private mortgage lenders
specialize in providing first and
to people in power of sale. A new private lender mortgage can replace the problematic mortgage and stop the power of sale immediately. Generally, a private lender will require the homeowner to have at least 20%-30% equity in the home. If the homeowner cannot qualify for a mortgage, the next best option is to sell the property to avoid incurring additional fees.
When is the best Option to Sell Your Property
If you’ve already tried to negotiate with your lender and cannot get a new mortgage, then you should seriously consider selling your home. When a lender sells a property under power of sale, they typically will sell the property for under its true value. By selling the property themselves the homeowner has more control over when they move out of their property and will have more time to find a new place to live. Most lenders will delay their power of sale process to allow the homeowner the time they need to sell the home.
About Ron Alphonso at Mortgage Broker Store
Ron is a licensed Ontario mortgage broker with
Mortgage Broker Store
and a specialist in the field of power of sales and foreclosures. He has helped hundreds of people resolve their power of sale situation. Ron offers free consultations to people in power of sale or foreclosure and can help to explain their options. Ron negotiates with lenders on behalf of his clients and can arrange for private mortgages and property sales. He has been featured on several media outlets including Toronto Life, Global News, and Reuters. To get in touch with Ron, you can call 416-499-2122 or email firstname.lastname@example.org