How to Stop Power of Sale

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jason@wodlinger.com	416.899.2750

• What is a Power of Sale (vs Notice of Sale)
• What triggers a Power of Sale
• Can the Lender actually take my house
• How much equity can I access in my home
• How to stop a Power of Sale
• How Mortgage Agents Help

What is a Power of Sale?

• A Power of Sale (POS) is a process used by Lenders to recover their costs from a Borrower who has missed payments (mortgage arrears).
• The process includes Notice of Sale (NOS) to the Borrower of a pending POS and ends with the eventual the sale of the property.
• The timing is as follows:
• 1) Mortgage payment is missed
• 2) Lender waits 15 days
• 3) Lender sends NOS to borrower
• 4) Borrower has 35-40 days to fix the situation
• 5) Lender starts to list the property on MLS
• A Lender may sell the property at a lower price which only covers their costs.
• The Borrower receives the remainder of the proceeds (if any after Lender fees deducted)
• NOS vs POS? The NOS is a notification while the POS is the actual process that takes place
• The difference between a POS and a foreclosure is that a POS allows the Lender to sell the property only to recover their owed monies. A foreclosure give the Lender 100% ownership of the property and they can keep all the sale proceeds.

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jason@wodlinger.com	416.899.2750

What triggers a Power of Sale

• The trigger for a Power of Sale would be missing only one payment – the Lender then can send out a Notice of Sale for a POS.
• Remember that if the Borrwer has *not* missed any payments yet, now is the time to solve the problem. Here are some solutions:
• 1) call the Lender to find a solution. Lenders generally do not want a POS. It’s costly and time consuming. Solutions may include interest only payments or payment relief. A Mortgage Agent can suggest other solutions.
• 2) Access home equity with a second mortgage. Remember that the total debt (1st + 2nd mortgage) must be less than 75% (or 80%) of your home value.
• Missed payments can damage to your credit score – which takes time to rebuild.
• If the Borrower knows they will miss a payment, they should sell the house immediately. They can sell the house at a higher price than the Lender would, thus recovering more money.
• Remember that increasing your debt load when you already have financial concerns can exacerbate problems.
• Speak with a Mortgage Agent who can assess if refinancing is the best course of action.

Can the Lender actually
take my house?

• A lender cannot take ownership of your house in a Power of Sale. They can only sell your house to recover their costs.
• In a foreclosure situation, the Lender does take possession of your house.
• If a Borrower can’t fix the situation they should sell the house before the POS begins. The Borrower can sell the house at the highest price possible, thus recovering more money. In a POS, the Lender could sell at a lower price.

How much equity can
I access in my home

• One can access as much equity in one’s house according to a) the appraised value and b) the Loan-to-Value (LTV).
• The Lender will require an appraisal.
• The LTV compares the loan amount to the house value. Example: if the mortgage is $750,000 and the house value is $1,000,000, then the LTV is 75%.
• The Lender offers an LTV based on a) credit score b) debt to income ratio c) property type, condition and location.
• Remember that if you go to an Alternative or Private Lender there could be additional fees which will lower the LTV you can access.
• A Mortgage Agent can explain these issues in full.

Need Help Now?	Contact us Now!
jason@wodlinger.com	416.899.2750

How to stop a
Power of Sale?

• One can stop a Power of Sale through various remedies including:
• Pay the outstanding missed payments so the mortgage is brought to good standing (if the term has not ended).
• If the term has ended (and payments are missing) one can pay out the current lender by refinancing with a new Lender. A Mortgage Agent can explain this process.
• If one goes to a new Lender remember that the LTV is important. If all the equity has been used up by the current mortgage then refinancing may not be feasible.
• One can go to court for an injuction to halt the POS process. It is highly recommended to contact a lawyer. The Borrower would need to prove the Lender has violated the Ontario Mortgages Act or some other policy (eg initiating the POS too soon). They can also try to prove that a brief extension of time could lead to a favourable resolution for everyone.

How Mortgage Agents Help

• A Mortgage Agent can help with a Power of Sale in several ways:
• Confirm if you have enough home equity to either get a second mortgage or refinance the entire mortgage.
• Assess how much loan you can qualify for.
• Calculate your new monthly payments.
• Recommend the best Lender whose solution will only make your situation better – not worse.
• Advise on all fees and risks with a new Lender.
• Analyse the situation and advise if it’s better to sell than to refinance.

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How much do
Mortgage Agents cost?

• Usually, if you move to an alternative bank, there are no Brokerage fees. There may be Lender fees which are always disclosed.
• In general, JWM agents are paid through commission by the Lender with whom you authorize us to work.
• However, there are Brokerage fees if you use our Private lenders.
• But usually if you are refinancing into a standard conventional mortgage, there is no extra payment charged by the mortgage agent.

Need Help Now?	Contact us now!
jason@wodlinger.com	416.899.2750

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Our Solutions

Mortgage Rates

(assumes credit score >600)

Term	Mortgage Rate
2 year term	4.29%
3 year term	3.94%
4 year term	4.14%
5 year term	3.99%
Variable Rates	contact us
1 year term	Our Private Lenders offer short terms
credit score <600	Our Lenders can help with bruised credit.

updated September 26, 2025

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Understanding the
Pre-Qualifying Process

• Pre-qualifying ensures we respect your time. If there is a high probability (no guarantees) to solve your situation we’ll tell you right away. If we can’t help at least we’ve saved you some time.
• Our system compares the information you provide in this online questionnaire against the requirements of our top lenders.
• Pre-qualified means your file will be prioritized ahead of any other client who has not been pre-qualified.
• Funds can be received faster when one is pre-qualified.
• A critical element of the analysis includes whether your total debt load is under 75% of your house value. To understand more about this analysis, contact us.

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Next Steps in the process

• After submission, one of our agents will contact you before 5pm today.

• Our agents will speak with you to learn more about your situation.
• We will request a few documents.
• When documents are received, we can provide a conditional mortgage approval in 24 hours.
• After issuing the conditional approval, the lender may ask other questions and requst more documents.
• Upon receipt of all documents you can receive funding in 48 hours.

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Private Lenders

AltaWest Capital	AW Capital
CMI Group	Firm Capital
Fisgard Mortgage	PHL Capital
Premhome	RiverRock
Sequence Capital	Tribecca Finance
VWR Capital	Gentai Capital

And many many more……

Alternative Lenders

CWB Optimum	Equitable
Hometrust	First National
B2B Bank	MCAN Financial
MCAP Financial	Haventree
RFA Mortgages	Effort Trust
Strive Capital	First Ontario

And many many more……

Note 2: example assumes high interest debt charged 15% interest rate per year; low debt interest rate charge is 4%

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