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Stop Power of Sale in Canada | Protect Your Home with Citadel Mortgages

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Today’s Second Mortgage Rates updated as of December 13, 2024 12:50 am

For a property located in

Second Mortgage Rates Start From*

4.99%

*Second mortgage rates range from 4.99-16.99 with the average rate being 10.99%. Second mortgages carry lender and brokerage fees that range from 2-10% with the average being 6%. Other conditions apply. Rate in effect as of today.

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What is a Power of Sale?

A power of sale is a legal process that allows a lender to sell your home if you default on your mortgage payments. Unlike foreclosure, the lender doesn’t take ownership of the property but instead sells it to recover the owed amount. This process can leave homeowners with significant financial and emotional challenges.

At Citadel Mortgages, we specialize in helping Canadians stop the power of sale process by providing fast and tailored mortgage solutions to stabilize your finances and protect your home.

Ontario Mortgage Act (Power of Sale): Learn more 

How Does the Power of Sale Process Work in Canada?

The power of sale process typically follows these steps:

  1. Notice of Default

    • The lender issues a notice after missed payments, allowing the homeowner to rectify the default within a set period (usually 15 days).
  2. Demand Letter

    • If the default isn’t resolved, the lender sends a formal demand letter requiring full payment.
  3. Issuance of a Statement of Claim

    • Legal action is initiated, and a redemption period begins, during which the homeowner can pay the overdue amount to stop the process.
  4. Property Sale

    • If the redemption period ends without payment, the lender sells the property, often below market value, to recover the debt.

 

When facing a powe of sale it is crucial to compare rates and terms from various private mortgage lenders. Citadel Mortgages helps you make an informed decision that best suits your financial needs.

How to Stop a Power of Sale with Citadel Mortgages

Refinance Your Mortgage

2. Second Mortgage or HELOC

3. Private Lender Solutions

  • If traditional lenders can’t help, Citadel Mortgages connects you with private lenders offering fast approvals and flexible terms.

Benefits of Acting Quickly to Stop Power of Sale

  1. Protect Your Home

    • Prevent the forced sale of your property and retain ownership.
  2. Avoid Credit Damage

    • Resolve arrears before they severely impact your credit score.
  3. Stabilize Your Finances

    • Access tailored financial solutions to regain stability.
  4. Save Your Equity

    • Avoid losing a significant portion of your home’s value due to a rushed sale below market price.

Eligibility for Power of Sale Assistance

To qualify for assistance, you’ll typically need:

  1. Sufficient Home Equity

    • You must have enough equity to refinance or secure a second mortgage.
  2. Proof of Income

    • Show proof of income or a clear repayment plan for the new financing solution.
  3. Up-to-Date Property Taxes

    • Property taxes must be current or factored into the financing solution.
  4. Willingness to Act Quickly

    • Time is critical; contact us immediately to explore your options.

Financial Consumer Agency of Canada (Mortgage Default): Learn More

FAQs About Power of Sale

What is the Difference Between a Power of Sale and a Foreclosure?
  • Power of Sale
    A power of sale is a commonly used method in Ontario, which allows the mortgage lender to sell your property when you fall behind on your monthly mortgage payments. Our mortgage agents and mortgage brokers can stop the power of sale process and keep you in your home today!

    Foreclosure
    A foreclosure is less common in Ontario. Like a power of sale, foreclosure allows the mortgage lender to sell your property, as well as get ownership and keep the money from the sale of your home. Our mortgage agents and mortgage brokers can stop the foreclosure process and keep you today!

  • These Documents will be required to stop the power of sale and close your mortgage needs:

    • Current Mortgage Information Statement – Must be dated the same month as your application form, if you do not have one you can contact your mortgage lender and request one to be sent to you by email.
    • Most recent property tax statement – If you do not have this, then you can get the most updated statement from your local city hall.
    • Most recent NOA may be requested to show no income tax owing –  If income tax owing it will need to be paid out from the new mortgage upon closing.
    • Other documents may be required, our mortgage agents here at Citadel Mortgages will help you if any additional documents are required for your mortgage needs.

Yes, the power of sale process can be halted during the redemption period by paying the overdue amount or refinancing your mortgage.

While late payments may already impact your credit, halting the process prevents further damage and additional financial consequences.

If your home is sold, you’ll receive any remaining equity after the lender recovers their costs, but this amount is often reduced due to legal and administrative fees.

With Citadel Mortgages, you can secure fast approval in as little as 48-72 hours, depending on your situation.

Final Thoughts - About Power of Sale

Facing a power of sale can be stressful, but with Citadel Mortgages by your side, you’re not alone. We provide fast, reliable, and tailored solutions to help you stop the process and protect your home equity. Contact us today to explore your options and take control of your financial future.