A significant number of Ontario households are facing a problem that they thought they would never encounter, a foreclosure in Kitchener, or power of sale of their property. There are many reasons why people are in this situation, which could include marriage breakdown, illness or a loss of job. This can result in missed mortgage payments and the eventual foreclosure of their home. At Access Mortgage, we can assist you with stopping the power of sale process from proceeding, and get you back on track financially through various strategies meant to IMPROVE your credit and NOT damage it further! Read on for more information about foreclosure in Kitchener and how Access Mortgage can help!
Foreclosure Process Explained:
If you just miss one mortgage payment, you aren’t going to go into foreclosure automatically. Even if you haven’t contacted the bank at all, foreclosure won’t likely begin until you’ve missed two or maybe even three payments. If you haven’t missed any payments yet or have just missed one, the best bet is to contact your lender and explain your situation. Because the lender would rather take your money with a slight delay than go through the foreclosure hassle, the lender is likely to work with you. However, if you don’t ever contact the bank, you can expect the foreclosure process to begin with a letter of notice from your bank after that second or third missed mortgage payment.
Power Of Sale Process Explained:
In about 99 percent of cases, lenders can use the Power of Sale method to dispense of properties that have delinquent mortgages. There are two types: statutory Power of Sale and contractual Power of Sale. If the lender uses the Ontario Mortgages Act to pursue a Power of Sale, it’s considered statutory. If the mortgage contract has conditions permitting the lender to sell the property that the borrower is using as collateral without using the court system to resolve the issue, then it’s considered a contractual Power of Sale. It is quite rare for a mortgage in Ontario not to have a Power of Sale provision in the paperwork. In short, the lender sells the property, recoups the value of the balance of the mortgage and any other costs, and then returns any proceeds remaining to the borrower.
How can Access Mortgage stop the power of sale process from proceeding?
You do have options if you are in default on your mortgage and think that you will not be able to make a payment on time. In fact, most lenders do not want to deal with the power of sale or foreclosure process at all, and will usually work with you and extend your payment deadlines. If you are not able to make payments at all, you can try asking the lender to change the terms of the mortgage (ie, mortgage refinance). When you work with Access Mortgage, we can assist you with reducing your monthly debt payments by getting an interest only loan, consolidating debts, or by extending your amortization period.
For more information about foreclosure in Kitchener and how Access Mortgage can stop the power of sale process, please feel free to continue browsing through our website. Click here to find our contact information and to fill out our contact form.