Apply For Stop Power of Sale
How Does the Power of Sale Work?
A power of sale is a stipulation written into a mortgage note that authorizes the mortgagee to put up the property for sale if they default on their scheduled mortgage payments. This agreement is allowed in many states in Canada, which is part of the lender’s right to seek foreclosure to avoid an insurmountable mortgage debt. The lenders take advantage of this right when the borrower fails to make the mortgage payment. Mortgages that include a power of sale in the contract put the borrower in a position that allows them to face a quicker foreclosure process if they default. Under the power of sale, the borrower might be forced to judicial review of foreclosure if they file litigation to bring the case to court.
How long is the power of sale process?
Once the borrower has received the “Notice of Sale,” the lender’s law firm will go ahead with the power of sale process unless they are stopped legally. The complete procedure takes about three months, depending on how swiftly the paperwork is processed. The Notice of Sale is sent to the borrower 15 days after the first default, and then the owner of the house has a redemption period of 35 days where they can bring the mortgage back into good standing. Putting the mortgage back in good standing means paying off all the mortgage penalties and arrears. If the homeowner fails to bring back the mortgage in good standing, then the lender has the choice to file a “Writ of Possession,” allowing them to appoint law enforcement (Police) to evict the owner of the house. The only option the lenders will consider at this point in time is allowing the borrower to pay off the entire mortgage balance.
How It Works
How to stop a power of sale?
Contacting the borrower
The first step in stopping the power of sale is getting in touch with the borrower. This is usually done in writing. The borrower's representative informs that they are in default and they need some grace period to rectify the problem.
Notice of sale
If the situation is not resolved, the lender will issue a Notice of Sale via a letter to the borrower, including a notice under the Bankruptcy Act. This can only take place 15 days after the first default payment of the homeowner. The Notice of Sale must be sent without fail to all parties of the agreement, including creditors.
Redemption period
After the Notice of Sale has been mailed, the lender cannot take any further action for at least 35 days. If a married couple owns the property, then no action can be taken for 40 days. This period is called the redemption period. To ensure the mortgage is brought to good standing, all the debts and penalties must be paid off entirely, including any lender's legal fees.
State of claim
If the borrower is unable to pay the lender the whole amount during the redemption period, the power of sale moves on to the next step. From this point onwards, the lender takes possession of the property and issues a state of claim to collect any amounts owed. Speak to our professional mortgage agents at Harpreet Puri Mortgage for further inquiries.
What is the best solution to stop a power of sale?
The power of sale of your property can be a sticky situation, and we at Harpreet Puri Mortgage are here for you.
The best way to stop a power of sale is to sell the property on your terms. If you are concerned that you might not completely pay off your mortgage, then selling your home will allow you to pay the remaining amount off. In the meantime, you can look for a property that is feasible financially, or you can rent as well. If you do not want to sell your house, then have a word with your lender and restructure new repayment terms to help make the payments manageable. Speak to your lender as quickly as possible if you have defaulted on your first mortgage payment, as the lender can issue a Notice of Sale after 15 days. Stopping the process as quickly as possible is the ideal solution as you will also be responsible for covering the legal fees of the lender’s law firm, in addition to you paying off any arrears and penalties. You can even consider getting a private mortgage to stop the power of sale, as it gives you the chance to pay off the current mortgage and place your home under a new mortgage plan.
At Harpreet Puri Mortgage, we can help provide the best solutions to stop the power of sale, including:
- Providing you with the necessary funds to pay off your debt.
- Assisting you in creating a detailed plan, ensuring you take charge of your finances.
- Find the best possible solutions irrespective of whether you have a good or bad credit score.
- Regardless of your level of income.
If you are considering stopping power of sale and require expert assistance, please do not hesitate to connect with us today. They will be glad to assist you with any queries that you may have.
How can I stop a power of sale if I have poor credit?
By focusing on your consumer credit, you can stop the power of sale if you have a bad credit score. Credit card debt accounts for almost 30% of your credit score. Ensure you keep your credit card balance low and pay your bills on time. Open a revolving consumer credit account if you don’t have one.

Advantages of working with a mortgage Agent to stop a power of sale?
- One-stop-shop. From filling out the application to speaking to various lenders and getting the best possible deal and advice.
- They have vast knowledge about the mortgage industry and contacts with several lenders.
- They understand your needs and goals clearly.
- They find the best solutions to suit your requirements.
Give Harpreet Puri Mortgage a call today at 416 543 9000 for further enquiries.
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