If you have ever experienced the financial pressure of being unable to pay your mortgage, then you know how stressful the situation can be. In extreme cases, lenders are able to force the sale of a property through what is known as a Power of Sale. A Power of Sale can be devastating for homeowners and their families, so it is important to understand what it is and how to avoid it. Let’s take a look at some tips on avoiding Power of Sale in Ontario.
Know Your Rights
The first step in any process is understanding your rights as a homeowner. In Ontario, if you fail to make payments on your mortgage for three consecutive months or more, your lender can initiate legal action against you and may eventually resort to using a Power of Sale in order to reclaim the unpaid portion of the loan. Understandably, this can be an intimidating situation for homeowners; however, having knowledge about your rights as a homeowner will equip you with the information necessary to protect yourself from such an event.
Seek Professional Help
If you are unable to make mortgage payments due to financial hardship or other circumstances beyond your control, seek professional help immediately. This could include talking to a financial advisor or credit counsellor who can help you determine the best course of action. They may also be able to provide assistance in negotiating with lenders or restructuring loans in order to avoid defaulting on payments and triggering a Power of Sale process.
Find Alternative Solutions
There are several alternative solutions available that homeowners facing financial hardship should consider before attempting any type of negotiation with lenders or entering into foreclosure proceedings. For example, refinancing mortgages can often provide temporary relief by allowing borrowers access to more favourable terms on their loans while they work towards catching up on payments. Additionally, selling properties quickly under “distress sales” may also be an option depending on individual circumstances and current market conditions.
Taking proactive steps towards avoiding foreclosure or Power of Sale is essential for any homeowner facing financial difficulties in Ontario. Knowing your rights as a homeowner, seeking professional help from advisors or credit counsellors and considering alternative solutions such as refinancing or distress sales are all important steps one should take when dealing with this type of situation.
At Nirman’s Law, we understand the financial and emotional toll that facing foreclosure or power of sale proceedings can have on homeowners. That is why it is so important to take proactive steps towards avoiding these situations. Knowing your rights as a homeowner, seeking professional help from advisors or credit counsellors, and considering alternative solutions such as refinancing or distress sales can all help ensure that homeowners have options available other than foreclosure proceedings. If you are facing foreclosure or power of sale in Ontario, our team at Ottawa Real Estate Lawyer is here to help.