A power of sale is the most common process used by lenders to recover their investment in a property. The process can be completed with little court involvement and can be completed in as little as 60 days.

As a home owner facing a power of sale situation you have a number of options, pay off any outstanding mortgages or liens, refinance the entire debt or sell the property. Each option has its own costs but bringing the debt back into good standing with your lenders is usually the cheapest way to stop a power of sale.

With most power of sales you will require a lawyer to stop the legal process and a mortgage broker to arrange financing of your property. In most power of sale situations time is of the essence, therefore disclose as much information regarding your financial situation to your mortgage broker, forgetting a small loan or lien will slow down the process and may cause others to feel that you are not providing full disclosure.

A mortgage broker will probably use private lenders to finance your property since most tier 1 lenders will not lend into power of sale situations. Private lenders will charge a higher rate of interest and there may be some fees, but you will retain your home.

Once a power of sale is started on your home you need to act quickly to reduce any fees that the lender may charge to your home.

*Helpful Tip*
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Posted, by Jonathan in guides, loans, money, mortgages, second mortgages.