A power of sale prevented after a Notice of Sale was issued

The scenario

Consider a homeowner in Simcoe County with an owner-occupied townhouse. After a period of temporary unemployment leads to several missed mortgage payments, the lender issues a Notice of Sale under Ontario's power of sale process.

By the time a homeowner in this position reaches out, enforcement is often already active, which makes these files some of the most time-sensitive we handle.

Why the banks say no

Traditional lenders decline applications like this because of multiple recent NSF payments, late mortgage payments, and active enforcement under Ontario's power of sale legislation.

What we do

In a situation like this, we would arrange a private second mortgage that covers the mortgage arrears, legal fees, and missed property taxes, and includes a few months of payment reserves to give the homeowner breathing room.

The outcome

The Notice of Sale is withdrawn after the arrears are paid, and the homeowner stays in the property.

The exit strategy

The plan is to move into a B-lender mortgage once the payment history has been rebuilt and the file has stabilized.

Facing something similar? Learn more about stopping a power of sale in Ontario, or mortgage arrears assistance.

This is an illustrative example based on the types of power of sale situations we regularly help with. It does not depict a specific client, and the names, location, and figures are representative rather than actual. Individual results vary and are subject to lender approval.