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The first step any homeowner should do if they receive a letter threatening power of sale foreclosure is simple. They should contact their lender immediately!
The fact is that in many cases the lender does not, in fact, wish to go through with the time consuming and expensive process of a Power of Sale in Ottawa. Rather, the lender feels they have no choice but to do so in order to rescue their money.
Power of Sale Foreclosure Guidelines
If the homeowner then contacts the lender and explains that their recent late or missed payments were due to some rare occurrence — a lost job, an illness, an injury — which is not likely to come up again, the lender is often happy to find an alternate solution. In general, working with the homeowner to devise a payment plan or similar is advantageous to both the lender and the homeowner, and (in many cases) enough to prevent a Power of Sale.
Unfortunately, this is not always the case. In some situations, the lender is not willing or able to work with the homeowner to allow them to keep their home. However, it’s still possible for the homeowner to keep hold of their home in spite of the lender — they simply need to find alternate financing.
Should this happen, the homeowner’s next stop is their local bank or mortgage professional. If it’s available to them, traditional financing will provide the best rates. Finding another institution willing to take over the mortgage is usually enough to stop the Power of Sale in Ottawa or anywhere else.
Foreclosure Ottawa Ontario
When Traditional Financing Isn’t Available
There are a few situations where traditional financing is generally not available. If the homeowner has many late or missed payments, a low credit score, or an “orphaned mortgage,” even the most experienced mortgage professionals may find it very hard to locate a replacement lender.
Possibly the most challenging case is the “orphaned mortgage.” These mortgages are sub-prime mortgages which were written before the financial crisis, and now the lender has stopped doing business in Canada. Mortgages were written by firms like Citi Financial, Accredited, N-Brook, GE Money, and Wells Fargo often fall into these categories.
Since the lender has stopped doing business in Canada and their investors want their money back, the lender cannot work with the homeowner to find an alternative payment plan — the lender needs cash, immediately. Yet because the mortgage was sub-prime (and the homeowner’s credit is usually still sub-prime) an alternate lender is nearly impossible to find.
Faced with this kind of situation, many homeowners come to the conclusion that there is no other option but to sell their home. Fortunately, this isn’t true.
No matter how bleak the situation may look, there is another option. The Refinance Program offered by HOS Financial makes it possible for homeowners who cannot find traditional lending to refinance — and keep — their homes. The reason is, HOS happens to specialize in locating ways that their clients can pay off the existing lender, and do it without selling their home. This way the lender does not need to proceed with the Power of Sale and the homeowner is able to stay in the home.
That’s not the only benefit of the Refinance Program, either. Since many of HOS Financial’s clients have sub-prime credit, the company also specializes in counseling them back to good “credit health.”
Over the course of the Refinance Program, homeowners will rebuild their credit, gradually bringing themselves back up to the status of borrowers in good standing. To a homeowner who is looking at a forced home sale this may seem like a secondary concern — yet seen in the long view, it’s equally if not more important than keeping the home.
The fact is that the reason the homeowner was facing a Power of Sale and needed the Refinance Program is directly related to their poor credit. If a traditional lender had been an option, they would have not had the trouble in the first place.
The HOS Financial Refinance Program lets homeowners restore their credit while living in their homes. This way, they achieve their goals of staying put, but also achieve something more important — the Refinance Program ensures they’ll never face a Power of Sale again.
Who Is Eligible for the Refinance Program?
The HOS Financial Refinance Program is available regardless of credit score. The two main criteria are a steady source of income and at least 10% equity in the home. If the homeowner can meet these criteria and they are facing a Power of Sale, they should contact HOS Financial immediately. It may make the difference between keeping their home and losing it. Please use the Power of Sale Ottawa Signup Form Below: