How HOS Financial Can Help Home Owners Stop Power Of Sale In GTA
When a letter arrives advising a homeowner of a Power of Sale, it’s often a frightening experience. Power of Sale GTA, as elsewhere, is widely seen as an unstoppable process which results in the homeowner losing their home and having to move. The situation is particularly dire for homeowners with low credit scores — for these homeowners, most mortgage professionals are unable to find replacement lenders to satisfy the one which is moving ahead with Power of Sale.
Fortunately, Power of Sale is not as unavoidable or as unstoppable as many homeowners have been led to believe. The company HOS Financial has established their Refinance Program with the specific aim of allowing clients to pay the existing lender — and stop Power of Sale — without selling off their current home and having to move.
Understanding Power of Sale
All GTA Power of Sale homes have a few things in common. The process begins with the lender contacting the homeowner to notify (some would say threaten) them of the intent to sell the home via Power of Sale to satisfy outstanding debt.
Usually this is because the homeowner was late or missed some payments on the mortgage. If the homeowner did so due to a temporary financial emergency — such as losing their job, or suffering an injury or illness — then they should immediately contact the lender (upon receiving notice of the Power of Sale) and try to work out an alternative payment plan. Since Power of Sale is expensive and time consuming, lenders would often prefer not to resort to the process.
In some cases, sadly, the lender is not able or willing to compromise or assist. This is particularly true for those homeowners unfortunate enough to have “orphan mortgages,” where the lender is no longer doing business in Canada. With these sub prime mortgages, usually written prior to the financial crisis, even the most seasoned mortgage professionals cannot find a lender willing to write a replacement.
Stopping a Power of Sale in GTA
There is still hope even for “orphaned mortgages,” though. Any Power of Sale can be stopped if the homeowner can come up with alternate financing. If the homeowner can pay the lender, the lender will not use their Power of Sale rights to sell the home. The problem then remains — where can homeowners find funding?
HOS Financial’s Refinance Program is specifically designed to solve this problem. HOS Financial is a company focused on identifying ways that their clients can pay the lender without selling the home, even if those clients have bruised or bad credit. By paying the loan through alternative means, the clients get to keep their home.
The HOS Financial Refinance Program doesn’t stop there, either. One of the most important aspects of the process (even if it doesn’t seem that way to the homeowner facing a Power of Sale) is restoring clients’ credit. The reason is, the low credit score is the cause of the problem.
For many clients, their low credit score meant they needed the sub-prime loan that got them into the situation in the first place, and it’s their low credit score holding them back from finding a replacement lender. Therefore, if they continue on with a low credit score, there’s a risk they’ll be facing the loss of their home again in the future.
To ensure clients will never again face this kind of stress, the HOS Financial Refinance Program includes a credit coaching component which helps borrowers improve their credit — and avoid these kinds of bad situations in the future.
How the HOS Financial Refinance Program Works
The HOS Financial Refinance Program only requires homeowners to have 10% equity in their home, giving them access to the remaining 90% so they can consolidate debt and improve their credit. This is possible because HOS Financial has a network of real estate investors willing to finance where traditional lenders aren’t.
Once the existing mortgage has been paid off (and Power of Sale avoided) HOS Financial then works with the homeowner to solve the problems that resulted in the Power of Sale. At the end of this process — which does not involve having to move — the homeowner takes back their home’s title.
The HOS Financial Refinance Program is available to homeowners regardless of their credit score or credit rating. The main criteria for eligibility is that homeowners have a minimum 10% home equity and a stable source of income. For homeowners facing a Power of Sale, time is of the essence — if they meet these criteria, they should apply for pre-approval from HOS Financial immediately.