Across the country, people are still losing their homes to power of sale every day. The banks are taking houses and leaving hard-working people with nothing to show for it. If you are behind on your mortgage, you don’t have to let the fear of power of sale ruin you. There are alternatives! In our latest post, we explore how a power of sale will impact you and what you can do to stop it.
Losing your house to power of sale can have both long and short-term effects. There could be problems you might not have even considered as a result of power of sale. If you are close to losing your home, there are solutions and ways to stop the banks from proceeding. First, let’s discuss the effects of power of sale.
The Financial Effects
When you have a Power of sale, it will obviously have an adverse effect on your credit. Your credit score can drop by over 250 points. making it difficult for you to open a new line of credit with anyone. Do see your credit begin to rise again, you will need to be patient and not have any other financial slip-ups. It will take about 3 years for your credit score to rise again. If you want to buy another house, you will need to wait approximately 2-7 years to be able to qualify for financing.
If you are in a power of sale process, and the bank is not able to recover the full amount borrowed, the difference is considered income. You might find yourself having to pay income taxes on the amount you were not able to pay back. Consult with an attorney or CPA to learn how a power of sale will personally impact you in Ontario.
Mental Effects
Losing your house isn’t fun. The prospect of being homeless can cause stress, depression and lowered self-esteem. Losing your house is a loss of comfort, shelter, and recluse. But remember, this happens to people every day and it will pass. Here at True North House Buyer , we can help you avoid this situation.
What To Do About It
The fastest and best option is to sell your house right away. However, if you are facing power of sale you might not have the time to wait for the traditional listing process. In addition, a listing will incur costs upfront. If you have missed mortgage payments, coming up with the cash to fix, repair and upgrade the house may not be readily available. You can choose to sell your house quickly to a professional homebuyer. True North House Buyer can make you a fair offer on your house, allowing you to sell quickly and walk away from the troubles you have been facing.
Not all homebuyers are the same. Before you agree to sell your house to a homebuyer, make you have run the numbers and that you won’t be hit by any hidden fees or charges. True North House Buyer is a full-service buyer. We handle everything from start to finish so you can get out of your difficult situation quickly.