Are you falling behind on your bills? One bill that you definitely want to pay at all costs is your mortgage payment. Even missing one can put you at risk of going into default on your loan. Once you’re in default, the lender can begin the legal process of taking your home away from you and selling it for the proceeds. If you have already received notice of default, then you need to call a real estate attorney to find out about your rights in the process. Many families look at Power of Sale or Foreclosure as a shameful thing and bury their “head in the sand”. This is a mistake many make thinking they have time or the problem will go away. Time is of the essence and these problems do not go away! The purpose of this article is to go through the two ways in which a Lender can take away your home – foreclosure and power of sale. If you live in the Peel Region of Ontario, call HOS Financial. We have been helping families escape Power of Sale or Foreclosure for over 15 Years – even if the default process has already started.
How does foreclosure work?
Foreclosure is the most commonly used method for a lender to take over a property which has gone into mortgage default. When this happens, your ownership as the borrower ends as the judge has issued the foreclosure judgment. At that point, the lender owns the house and your debt is considered satisfied in full.
Here are some things you need to know about the foreclosure process:
What is a power of sale?
The process known as “power of sale” differs somewhat from the foreclosure process. The primary differences have to do with the timing of the transfer of ownership – in the case of Power of Sale, it takes place at the time of sale instead of at the foreclosure hearing. In a Power of Sale, the borrower could end up with obligations after the sale, depending on the sale price.
Here’s an overview of how a power of sale works:
If you’re reading this article, you might be in the throes of mortgage default right now. There is a way out that does not involve either foreclosure or power of sale – you can take advantage of our rent to own program. You sell your home to an HOS Financial Investor with an agreement to buy it back at a pre-determined time and price in the future. The money from the sale satisfies your balance due and pays other debts, the collection calls stop, your family stays in your own home and HOS Financial will work with you to get you Bank ready again in the future. During the Rent to Own program, you are converted from an Owner to a Tenant back to an Owner. During the Rent to Own program you pay a lease payment each month. Some of this Lease payment ( 20%) goes into Option Credits (Savings) which is added to your Initial Equity to form your eventual down payment when you buy the home back at the end. After the lease term is over, you go to a bank and take out a new mortgage. You get to keep your home, and you don’t have a foreclosure or power of sale on your credit report. Throughout the Peel Region of Ontario, we have helped many families avoid Power of Sale – and we can help you too.
If you are in the initial phases of Mortgage default and need help escaping foreclosure or power of sale, consider HOS Financial. In addition to saving homes, HOS Financial will work with you to rebuild your credit to become bank ready in the future. We have helped many families avoid foreclosure and power of sale in the Peel Region of Ontario and look forward to working with you!