If you can’t make your mortgage payments each month, you are in danger of falling into default with your lender. At that point, the lender has the right to start a legal process that starts with notification of default and can end with the lender taking over the house and evicting you from the premises. If this process is already underway for you, then you should seek the guidance of a real estate attorney; the purpose of this article is to give you an overview of the process and tell you about how HOS Financial can help you out if you live in the York Region of Ontario.
What is a power of sale?
This provision permits lenders to sell your property when you default on your mortgage. The ownership of the property actually shifts once the sale has taken place – and even after your home has been sold, you will still have some obligations to your lender that you have to satisfy. Here are the basics of this process:
How does foreclosure work?
Foreclosure involves the lender requesting and receiving a court order to take over your property. In this situation, the ownership of the property goes right to the lender after the foreclosure has been granted, and the switching of the title of the property constitutes full payment of the balance due on the defaulted mortgage. Here are some differences between foreclosure and power of sale:
If you are in the initial phases of default and need a way out that does not involve either foreclosure or power of sale, consider HOS Financial. If you’re about to go into default, you can sell your house to us, and then sign a contract as a tenant/borrower, and over the term of your lease purchase agreement, you can rebuild your credit while putting some of your monthly payments aside into savings for a down payment. Once your credit is up where it needs to be, you take out a new loan and start your mortgage over. We have helped many people avoid foreclosure and power of sale in the York Region of Ontario and look forward to working with you!