How HOS Financial Can Help Home Owners Stop Power of Sale in Ontario
Power of Sale in Ontario is a frightening prospect for many homeowners, especially those with a low credit score. Most mortgage professionals are not able to find a sub-prime lender to replace the existing one, which means that a homeowner facing Power of Sale often feels compelled to sell their home. Fortunately, this often isn’t necessary. HOS Financial has established a program which allows many clients to pay off their existing lender without having to sell their home.
Power of Sale Ontario Canada:
What Is an Ontario Power of Sale?
What most people think of as “foreclosure” is, in today’s real estate market, more accurately termed a Power of Sale. In a foreclosure process, the lender must go through the process of suing the borrower, in order for the court to remove the borrower’s claim on the property and allow the lender to sell the home.
The Power of Sale process circumvents the need for an extensive, drawn out, and often expensive court process. It begins when the loan is made and the property is purchased — a special “deed of trust” for the property is issued and transferred to a “trustee,” who also has the power to sell the property if the borrower (i.e, the homeowner) cannot meet their lending obligations.
This trustee acts in lieu of a court, selling off the home and recovering the lender’s money if the lender notifies the trustee that the borrower has defaulted on their payments.
Power of Sale Ontario Process
Why Homeowners Face a Power of Sale in Ontario
Many lenders are now recalling or refusing to renew mortgages due to missed or late payments, too-low credit scores, or because the loan was made by a sub-prime lender who is no longer doing business in Canada. The last case is known as an “orphaned mortgage,” and it’s particularly common for borrowers who took out loans from companies like Citi Financial, GE Money, N-Brook, Wells Fargo, or Accredited.
In this kind of situation, where the borrower has a sub-prime credit score, it may be difficult or impossible for regular mortgage professionals to locate a replacement lender willing to make a sub-prime loan. (HOS Financial often can.)
Without a replacement lender, the homeowner usually faces an Ontario Power of Sale or Foreclosure. The bank or lender wants to see the mortgage paid off, while few or no lenders are willing to issue a new mortgage. Therefore, in order to pay the original lender, the home must be sold. But must it really?
HOS Financial Refinance Buy Back Program
Here is where the HOS Financial Refinance Buy Back Program comes to the rescue. With the Refinance Buy Back model, homeowners do not have to sell their homes. They can keep living there, they do not need to list their homes, find a new place to stay, or move out.
Homeowners who take part in the Refinance Buy Back program are also able to rebuild their credit standing. Since the root cause of their problem — the reason they could not get a new loan — is often their sub-prime status, this ensures they won’t face the same Ontario Power of Sale again.
Best of all, the Refinance Buy Back program gives homeowners access to as much of 90% of their home’s equity in order to pay off outstanding bills, take care of Revenue Canada arrears, pay their property tax arrears, and consolidate their debts.
Who Qualifies for the Refinance Buy Back Program?
Nearly any homeowner can use the Refinance Buy Back model to escape foreclosure or Power of Sale in Ontario. It’s available to any homeowner who has at least 10% equity and secure income.
Again, a secure income plus at least 10% equity in the home are the main criteria HOS Financial looks for. Unlike virtually every lender, they are not concerned about homeowners’ credit ratings, because part of their Refinance Buy Back model involves mentoring and tutoring homeowners on how to repair their bad credit scores.
The HOS Financial Refinance Buy Back model allows homeowners to put a stop to eviction drama, and preempt the loss of respect and humiliation associated with losing their homes. They don’t have to fear seeing personal belongings moved to the street or watching their wife or children in shock. HOS will connect them with an investor who will supply the money for the mortgage, and enable them to keep their Power of Sale Ontario home.