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Stop Power of Sale in Markham
What are Power of Sale loans?Before indulging into what Power of Sale loans are, it is a savvy move to ensure that the definition of a Power of Sale is clearly understood. A Power of Sale is one way a house can land on the open real estate market, priced at fair market value and the seller is the holder of the mortgage that was once on the house (the home owner did not keep to their mortgage contract with the lender or, a mortgage payment was not made as per the contract agreement). When the mortgage contract states that any default by the home owner with the lender automatically transfers ownership/title/deed to the lender. The lender now has legal ownership of the home and will list the house on the MLS at fair market value (this is required by law, so the ability to negotiate price is usually unsuccessful). Now, Power of Sale loans is a type of loan product that is geared for houses that show the lender selling and listing it as a Power of Sale. This kind of loan is generally processed more quickly with a higher approval rate (the house itself is considered a portion of the security needed against the loan).
How do stop power of sale loans work?When a lender that is holding the legal rights to list and sell a house and a potential buyer shows interest in the house (but that person does not have the cash in hand), this is where the buyer would turn to Power of Sale loans lenders. The type of lenders that deal in Power of Sale loans knows upfront that the buyer needs fast application and approval processing for a quick close, otherwise the buyer may be faced with a multiple offer situation from other interested buyers. Once the selling lender has approved a buyer to purchase the home, this lender then provides the buyer with a foreclosure notice to take to their chosen Power of Sale loans lender and this quickens the process of closing the deal. Yes, the borrower/buyer still must provide the typical financial information to obtain a loan (credit check, financial history, current total income, etc..), so the lender is reassured that together with the house as collateral, the buyers can afford the monthly payments and adhere to the Power of Sale loans terms within the contract.
How can loans prevent the bank from liquidating your home via power of sale?The gainful, personal impact for any buyer when using Power of Sale loans is not only that they purchased a home at fair market value (this saves money as some sellers like to raise the list price of their home above fair market value), but it also is a faster process than a typical mortgage loan.
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