Home Rent to Own | Power of Sale/Foreclosure | Credit Management The Best Win-Win Options To Have A Home In Canada | Page 9

Power of Sales, Foreclosure: What’s the
Difference and What’s Better for You
• A foreclosed property or sold through the power of sales
means that the party who lends, usually a bank, also known as
the mortgagee is selling the property, as opposed to the
homeowner or mortgagor. It is how third lender parties go
about to recover the amount of money lost when the
mortgage was not paid.
• Here is where things get a bit more complicated as there are
huge differences between a foreclosure contract and a
power of sale one. In the first scenario, let’s say for the sake of
the situation the bank gets ownership of the property, which is
then sold by a court, relieving the house owner of
responsibilities.