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
- What if my credit score and income is low?
- How to stop a Power of Sale
- How Mortgage Agents Help
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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 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 lists 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 gives the Lender 100% ownership of the property and they can keep all the sale proceeds.
What triggers a Power of Sale
- The trigger for a Power of Sale would be missing only one payment – the Lender can then 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 work out a payment plan. 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 cannot make their payments they should consider selling the house. They can do so 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
- You can access as much equity in one’s house according to a) the appraised value and b) theLoan-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 approves 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 in detail.
Low Credit Scores
and Income
- We know Lenders who understand bad credit. Our Mortgage Agents work with all Lenders.
- Our Mortgage Agents work with Lenders who understand lower income situations.
- We can estimate the likelihood of approval – despite low income and credit.
- Our Agents can estimate the mortgage rate for Borrowers with lower income and credit.
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) you 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.
- You can go to court with a lawyer for an injuction to halt the POS . You would need to prove the Lender has violated the Ontario Mortgages Act (eg: initiating the POS too soon). A brief time extension 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 can add 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 advis
- e if it’s better to sell than to refinance.
| Power of Sale | Foreclosure | Refinancing |
| Second Mortgage | Payout POS | Alt Lenders |
How much do
Mortgage Agents cost?
- Any and all costs must be disclosed in writing before you agree to financing.
- Alt Lenders charge a Lender fee. Sometimes there is a Brokerage Fee.
- If you use our Private lenders there is both a Lender and Brokerage Fee.
- In most cases, if you are refinancing with a conventional Bank, there is no extra payment required to the mortgage agent.
| Need Help Now? | Contact us now! |
|---|---|
| jason@wodlinger.com | 416.899.2750 |
Get Pre-Qualified Now
We’ll compare your profile against
our top lenders’ requirements.
Begin here
We will never sell or share your data with any third party. Only employees of JWM will contact you to see if we can help.
| Agents Available Now | Call us Now |
|---|---|
| jason@wodlinger.com | 416.899.2750 |
Get Pre-Qualified Now
We’ll compare your profile against
our top lenders’ requirements.
Begin here
We will never sell or share your data with any third party. Only employees of JWM will contact you to see if we can help.
Our Solutions
Mortgage Rates
(assumes credit score >600)
| Term | Mortgage Rate |
| 2 year term | 4.24% |
| 3 year term | 3.79% |
| 4 year term | 3.94% |
| 5 year term | 3.99% |
| Variable Rates | 3.54% |
| 1 year term | Our Private Lenders offer short terms |
| credit score <600 | Our Lenders can help with bruised credit. |
updated January 19, 2026
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 your information vs
- 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.
- It is critical that your total debt load is under 75% – 80% of your house value. To understand more about this analysis, contact us.
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.
Mortgage Agent Referral Database
How Does it Work?
- Describe your situation
- We search our database for Agents who specialize with purchases
- We match Agents to your needs
- Agent(s) contact you within 5 minutes
FAQs
Begin here…
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%
