How does sales power work in Orillia?
A selling power is legal action that is initiated when you default on your mortgage. A mortgage default is caused by missed payments by the homeowner. This means that you broke the terms of your mortgage contract and your lender is legally entitled to begin the process of taking over your home to get their money back.
Your lender can initiate power to sell proceedings as early as 15 days after you miss a mortgage payment.
In Orillia, your lender can use the selling power to foreclose and sell your home to get their money back. When your home is sold through a power of sale, your lender is paid off, including their legal and real estate fees, and you keep the remaining funds.
Many homeowners in Orillia and across Canada are losing income due to COVID closures. The possibility of default and selling power increases.
What you can do to prevent or delay a selling power
If you think you might default on your mortgage, contact your lender as soon as possible. Explain your situation and why you will not be able to make your next payment. Most lenders don’t want to lose a paying customer and are open to renegotiating your loan agreement for more manageable monthly payments.
You can try to reduce your monthly mortgage payments by requesting an extension of the amortization period. The amortization period is the length of time you have to pay off your entire mortgage. By extending the amortization period, you will reduce your monthly principal payments, but you will be making payments with interest for a longer period.
Termination of a power of sale or a foreclosure in progress
A foreclosure is when the lender takes back ownership of your home. A lender who sells your home under foreclosure keeps all of the proceeds from the sale.
If your lender has initiated a foreclosure or foreclosure power against you, paying it off is the only way to stop them from taking your home. You can repay your lender anytime before they sell your home, which will end the power of sale or foreclosure.
You can get a second mortgage to help pay the lender off your first mortgage. Usually, the second mortgage payments only carry interest, which provides you with the funds you need to pay off your lender and get your first mortgage back on track.
Another option is mortgage refinancing. Mortgage refinancing completely replaces your old mortgage with a new one, paying off your lender in full and ending any foreclosure or power to sell against you.
In today’s market, there’s a good chance that when you get mortgage refinancing, your new mortgage interest rate will be lower than what you paid on your original mortgage. Mortgage refinancing is priced at the current market interest rate, saving you money with lower monthly payments when interest rates are low. You must have a high income and a high credit score to qualify for mortgage refinance.
Are You Losing All Equity In Foreclosure?
If your house is foreclosed, you lose all the equity you had in the house. During foreclosure, your lender receives the deed of ownership, making them the new owner and allowing them to use your home as they see fit. Typically, they will sell your house as quickly as possible to get their money back.
Get help from the power selling experts in Orillia, Ontario
If you’re worried that you might be facing selling or foreclosure power over your home, get good advice right away.
You can get help from expert sales power at Orillia by contacting the mortgage brokers store. They can help you understand the power of the sale or foreclosure process and explain your options to saving your home.
You may be able to leverage the equity in your home to get the funds you need. If you own a home in Orillia, you may have more equity than you think. Throughout 2020, countless millennials and remote workers have left the GTA for small towns and rural communities. This migration has resulted in an increase in the value of homes in Orillia. In September 2020, the average price of a home in Orillia was 12% higher than in September 2019. Talk to the experts at the Mortgage Brokers Store. They can provide a free quote and help develop a strategy that maximizes your home equity to stop selling power.
The Mortgage Broker Store in Orillia team of private lenders and mortgage brokers help homeowners tap into their home equity to meet all of their financial goals.