Power of Sale & Foreclosures

Power of Sale

In the province of Ontario, a power of sale is a procedure in which the mortgage lender gives written notice to the borrower, that the mortgaged property will be repossessed and sold if the mortgage is not brought up into good standing.

Normally a Power of Sale procedure takes place once the borrower has defaulted in their mortgage payments. Lawyers at Shah Law Group PC have worked with both lenders and borrowers in power of Sale procedures.

Foreclosures

In the foreclosure process, the lender is able to take the title to the property. This is different from a power of sale, whereby the lender only has the right to sell the property.

With a foreclosure the lender must sue the borrower by issuing a claim. The lender must wait for the court to issue a judgment before proceeding. Once the foreclosure process is complete, the lender takes the title to the property and the former owner is not entitled to any future profits from the sale of the property.