What Are My Options Right Now?
If you're facing a Power of Sale, you may still have several options. The right one depends on how much equity you have, where you are in the enforcement process, how much is owing and whether keeping the home is financially realistic.
← Back to Power of Sale QuestionsThere Is More Than One Way to Deal With a Power of Sale.
Once we know the property value, total amount owing and how far the lender has progressed, we can determine which options are actually realistic.
Catch Up the Mortgage
Depending on the stage of enforcement and the lender's requirements, bringing the mortgage back into good standing may still be possible. The amount required can include more than just the missed payments.
Refinance the Mortgage
If there is enough equity, refinancing may allow the existing mortgage, arrears and enforcement costs to be paid out before the lender completes the Power of Sale.
Alternative or Private Financing
If a bank is no longer realistic, an alternative or private lender may still consider the property and available equity.
Bring in Family Assistance
Family may be able to help with funds or, in some situations, participate in a financing solution. Even a partial contribution can sometimes change the numbers enough to create an option.
Sell the Property Yourself
If keeping the home is not financially realistic, selling before the lender completes the Power of Sale may give you more control over timing, price and the overall process.
Do Nothing
This is still a choice, but usually the one that gives you the least control. Enforcement can continue while legal and other costs may continue to be added to the amount owing.
Equity. Timing. Exit Strategy.
A Power of Sale file cannot be properly assessed by looking at missed payments alone. We need to understand the entire financial picture and how much time remains.
Most importantly, we need to determine whether saving the home creates a sustainable solution or simply postpones the same problem.
Property value compared with everything owing determines how much room may exist for replacement financing.
The stage of enforcement can materially affect which options are still practical.
Stopping today's emergency only makes sense if the mortgage situation will be manageable afterward.
If short-term financing is required, there should be a realistic plan to refinance, repay or sell later.
Refinancing May Still Be Possible.
Being in a Power of Sale does not automatically mean another mortgage is impossible. The financing has to make sense based on the property, available equity, amount required, timing and exit strategy.
Confirm the Property Value
An appraisal is generally required. The current market value determines how much equity is actually available.
Confirm Everything Owing
We need the mortgage balance or payout, arrears, lender legal costs, property tax arrears and any other mortgages, judgments or liens that may need to be dealt with.
Calculate the Loan-to-Value
Once value and total debt are known, we can determine whether there is enough equity for an alternative or private lender to consider the financing.
Determine the Monthly Cost
A financing solution should not simply stop today's emergency. We also need to know whether the replacement mortgage payments are manageable.
Build the Exit Strategy
If private financing is used, there needs to be a realistic plan to get out through refinancing, repayment or eventually selling the property.
Move Quickly
Appraisals, lender approvals, mortgage instructions and lawyers all require time. Waiting until the final stage can make a workable solution harder to complete.
Selling Yourself May Be the Better Financial Decision.
Not every Power of Sale should be stopped with another mortgage. If the new financing would be too expensive, there is no realistic exit strategy, or the underlying financial problem has not changed, another mortgage may only delay the inevitable.
Selling the property yourself before the lender controls the process may give you more control over the listing, price and timing while helping preserve as much of your remaining equity as possible.
The objective should be to protect your financial position — not simply to keep the house at any cost.
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