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Stop Power of Sale in Mississauga
What are Power of Sale loans?Let’s step back for a moment and clarify what exactly a ‘power of sale’ is and why it is an attractive option for some homebuyers. A ‘power of sale’ is executed by the lender that holds the mortgage on that specific home, which means the homeowner defaulted on their mortgage payment at some point and through the lender contract (a provision or stipulation), the lender assumed ownership of the home and listed it on the real estate market to sell. This is now a ‘power of sale’. Power of Sale loans is a specifically designed loan that is set up on the basis of a ‘power of sale’, in other words, the lending institution takes into account the risk factor of the loan and the amount needed to purchase the ‘power of sale’ on a home (this type of sale promotes the home in ‘as is’ condition without inspections or any of the other criteria that typically is associated with a regular home purchase).
How do stop power of sale loans work?Once the lender has legalized all aspects of securing the home, the lender posts a foreclosure notice which means that this house is up for foreclosure sale (hence the Power of Sale loans to quickly purchase the house at fair market value or just below fair market value). Power of Sale loans lenders weight out the risk and are prepared to move quickly to approve applications by borrowers, as ‘power of sale foreclosure’ homes (by law) must be sold at fair market value and listed on the MLS to allow multiple buyers the chance to make an offer.
How can using Power of Sale loans offer a personal and gainful impact?There is plenty of perks to purchasing a ‘power of sale foreclosure’ home, especially for those people who are looking for a fixer-upper house that needs renovations or total demolition. The application process for Power of Sale loans is quite like applying for a regular loan in higher monetary amounts, but lenders that are proficient in Power of Sale loans do understand there is a limited time frame to interject a good offer, so the process is sped up a little more for the borrower. It is not uncommon for homebuyers to come across little ‘issues’ when purchasing a home that is listed as a ‘power of sale foreclosure’, so being prepared for the pros and cons is a great step to take.
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