What You Can Do to Prevent or Delay a Power of Sale
In the province of Ontario, the foreclosure process is called “Power of Sale.” When you default on your mortgage by 15 days or more, the Lender is able to issue a Notice of Sale. The redemption date is usually about 45 days. You have an opportunity to bring the mortgage to good standing. If you do so before the redemption date, the Notice of Sale is voided. Otherwise, the Lender can issue a Statement of Claim to request possession of the property and request the property be sold to recoup the debt owing.
Here are some different courses of action that homeowners can take to prevent or delay a power of sale:
Pay Arrears & Costs
Though it may be a financial difficulty, the simplest thing a homeowner can do to prevent the power of sale proceedings is to pay up the outstanding balance, known as the arrears and costs. At that point, the mortgage returns to good standing and you have no further concerns as long as you keep up with mortgage payments going forward.
Pay Arrears & Costs in Court
Even if the power of sale proceedings have reached the courts, you can still pay up the arrears and costs, in addition to a small fee. As long as the property has not yet been sold, this will allow you to keep your home.
Lender Acts in Haste
If the Lender takes any steps before the required waiting period(s), the entire procedure may be nullified. The Lender would require a court order for the power of sale proceedings to continue. If you have proof that a time limit had not yet expired, contact an Ottawa law firm for assistance.
Request for Information
As a homeowner, you have the right to know information about your mortgage and the power of sale proceedings. If you do not receive a response to your request for information within fifteen days, or the information is incorrect or incomplete, this may result in a suspension of the power of sale process.
These are just some of the ways that homeowners can prevent or delay the power of sale process. If you are involved in a power of sale situation, an Ottawa law firm like Mullowney’s Law can help. We will fight for your rights as a homeowner as you defend yourself against the bank or other lenders. Contact us today for a free consultation to discuss your legal options.