Power of sale means the bank has exercised it’s right to take control of a property where the owner has failed to honor their obligations under the terms of the mortgage. In USA the term used for Power of sale is foreclosure or distressed homes.
The bank acts to sell and get back the funds lent to the owners. Any extra money received from the sale is returned to the owners. In taking over the home the owners are evicted from the property by the sheriff . The locks are changed and the home secured.
Sometimes these properties are bargains and at other times they are just good value! This one is in the Orleans / Avalon community is in very nice condition. We will stage the home tomorrow wash the walls and take additional photos. Open house this Sunday with offers presented from August 8. Offers can only be received after the property has had a week of exposure on the open market making it fair for all buyers and of course for the original mortgage holder. The property must be sold at market value.
Interestingly, the offer on a power of sale accepts some additional risks on the buyers side and that is because the Bank can’t guarantee chattels, taxes, or the state of the roof shingles or the furnace because it doesn’t  have knowledge of the state of these things.
A experienced buyer can do very well in a power of sale. There is one additional risk. If the original owner were to win the lottery they could buy back the debt or redeem the mortgage and take control of the property even if the new buyer had signed  binding offer with the bank, but I’ve never heard of that happening. When they win the lottery in Ottawa they move to Wesboro! ha ha ha

Recommended Posts