Power of Sale is a process for a lender to take possession of your property for the purpose of selling to pay off the mortgage loan against your property.
A good example was a couple’s beautiful house in Brampton. They lost their house for they ignored to act on the Power of Sale notices they received. They acted only when they were given final notice to vacate the property within fifteen days from the date they received the notice to vacate.
Consequently, the house was sold through Power of Sale. It was sold way below market value. In addition, the couple had to pay thousands of legal fees, sheriff’s fee, agent commission, disbursements, and other related expenses.
The bottom line, not only they lost the equity on their house, they were also required to pay for the shortfall for the proceeds of sale was lower than the amount needed to pay for the mortgage owing, legal fees, agent’s commission and disbursements as above mentioned.
To avoid the heartbroken experience by the above couple, when you are behind on your mortgage payments do not ignore Power of Sale notice so can have enough time to look for refinancing, and as a last resort to sell your house at fair market value and get the equity. rather than to let your lender sell your house through Power of Sale.