Oakville, ON -- (SBWIRE) -- 06/06/2017 -- Many homeowners in Oakville find themselves unable to make monthly mortgage payments for various reasons. Not making mortgage payments can result in the mortgage lender using a power of sale to sell the home. Ron Alphonso at Mortgage Broker Store has been stopping power of sales across Ontario for many years and is expanding his service area to the city of Oakville.
What is a Power of Sale?
A power of sale is a legal process allowing lenders to sell off a client's house when they fail to make payments as agreed. As part of this process lender will sell the home and pay off all debts secured on it. Remaining funds will be given to the homeowner but that isn't usually much after legal fees. The homeowner is often left with nothing after power of sale. Lenders in Oakville prefer using the power of sale process it as it is speedier than foreclosure which involves several court appearances and is rather expensive.
Avoiding a Power of Sale
People can avoid the completion of a power of sale by acting quickly. Most lenders would rather resolve issues with their clients instead of using power of sale against them. If requested, many lenders can extend the payment terms and may change the terms of the mortgage. Getting a longer amortization period, consolidating debts and getting an interest only loan are excellent ways of reducing monthly interest rates. As a last resort, the homeowner can inform the lender of their intention to sell and they can delay the power of sale proceedings.
Stopping a Power of Sale in Progress
Once the homeowner gets the Notice of Sale, the power of sale process has begun and the lender will send the homeowner's file to their lawyers. At this point the homeowner might be required to pay the full loan amount or a specific sum to correct the loan's status. Homeowners can get the money from family or friends but if that isn't an option, private lenders might be able to help. A private lender can provide a second mortgage that will bring the defaulted on mortgage back into good standing. A lender may also buy out the mortgage in default and arrange a replacement loan for the homeowner.
With enough time, the homeowner can sell the home in order to stop a power of sale. This is a great option that leaves the homeowner with more money after paying off the lenders than if lenders use a power of sale. When the homeowner has been evicted or is close to eviction, it might be harder to sell the property. With such constraints in mind, private lender are able to buy the house quickly and even make arrangements for the former homeowners to live there as tenants.
About Ron Alphonso
Ron Alphonso is a widely recognized mortgage broker and an authority in stopping power of sales in Ontario. He is also a private lender with a history of financing new mortgages for people in Ontario. Owing to his expertise, Mr Alphonso has been featured in several news outlets including Global News, Toronto Life and Toronto Star among others. Ron is always available to respond to questions about power of sale. He can be contacted directly at 416-499-2122 or via email at ron@mortgagebrokerstore.com.