Foreclosure is a legal proceeding where a lender gets a court order to take over the property. There are strict rules of foreclosure. In a foreclosure ownership goes to the lender. The title to the property is registered in the name of the lender who accepts the property as a full payment of the loan. In a foreclosure sale the following is generally observed. In Ontario, there is a similar process to foreclosure called, “Power of Sale.” Like foreclosure in Waterloo, this process involves the lender recovering mortgage debt when a homeowner is in arrears or in default of their mortgage. Access Mortgage can assist you with making sure the power of sale process does not proceed. Read on for more information about foreclosure in Hamilton and how Access Mortgage can help.
What is the power of sale process?
Power of Sale is a provision which allows the lender the power to sell the property when the borrower defaults the mortgage. In this process the ownership changes hand after the sale is complete. When selling by Power of Sale, the lender will still have some obligations to the mortgagor. When selling under Power of Sale the following may occur:
- Ownership: The ownership of the property does not change hands till the subject property is sold.
- Use of a relator: A relator may be used depending upon the jurisdiction.
- Proceedings goes to the owner: Extra money is given back the homeowner, in case of a shortfall the owner is responsible.
- No Fire Sale: The sale is normally done fast but no fire sale. The offers from the buyers should be carefully examined. The homeowner may request an accounting.
- Default Insurance Claim: The lender may not be able to get the full money back. If the property is insured against default then the lender can make a claim and the insurer will pay the lender and sue the homeowner for that amount.
How can Access Mortgage stop the power of sale and foreclosure process?
Considering that fact that most lenders do not want to even bother with the power of sale or foreclosure process, most times, they will be able to work with you in regards to your payments. It is common that a lender will allow you to extend your payment deadlines if you ask. However, if you are not able to make any payments at all, you can ask your lender to change the terms of the mortgage. Working with the team at Access Mortgage makes it possible to reduce monthly debt payments by getting an interest only loan, consolidating debts into the mortgage, or by getting a longer amortization period. We are on your side, and we are here to help!
For more information about foreclosure in Hamilton and how Access Mortgage can help stop the power of sale process from proceeding, please feel free to continue browsing through our website. Click here to find our contact information and to fill out our contact form.