Home Rent to Own | Power of Sale/Foreclosure | Credit Management Do You Want To Become A New Homeowner Or Stop Fore | Page 7

Power of Sale: Options and Myths
• The Options Available for Homeowners
• Since the power of sale can proceed quickly, any homeowner in Canada who has received
a letter of power of sale should contact the lender immediately. The reason for this is,
even the efficient power of sale process is time-consuming and expensive for the lender
compared with the typical loan. Therefore, most of the lenders will recover their money
through normal loan payment rather than the power of sale. If the homeowner makes a
late payment or missed a payment the results of rare occurrence, then it is the
responsibility of the lender to use an alternative payment plan that provides the best
possible outcome for the lender and the homeowner. The power of sale should be avoided
all the time.
• In some situations, the lender may not be able to worth with the homeowner such as
orphaned mortgages, where the lender is not doing the business anymore in Canada. This
is fortunate for the borrower to still hold to his property even if the lender is not able or
willing to work with him. The borrower needs substitute financing. Traditional financing
offers the best rates only if the borrower is completely eligible.