Recently a Port Credit Client asked us to explain Power of Sale.
She said she was “asking for a friend”. We checked in with Gord Mohan, one of our favorite Mississauga real estate lawyers, and Gord said:
“In accordance with Ontario’s Mortgage Act, in the event of a mortgage default, the lender has the right to assume control of the property and sell it to a third party after providing the borrower with a 45-day notice. In this manner, the lender can recover the outstanding balance under its mortgage and reimburse the remaining amount to the borrower. However, if the sale proceeds do not fully cover the mortgage balance, the borrower remains responsible for settling the remaining deficit.”
Have questions? Let’s connect.
Get quick answers to your questions, no matter how difficult – 7 days a week.