Foreclosures and Power of Sale Done Right

Trainer: Ross Lightle & David Bourdon (lawyer)

Days: 2

Depending on where you live or are looking for properties, the foreclosure process will differ from province to province. If you are in a province that uses a power of sale remedy, the lender can compel the sale of the property simply by filing the requisite notices. The courts get involved only at the end of the process when title is actually transferred. Some provinces require that the lender get an order from a court to sell the property, known as a judicial foreclosure. In these provinces the lenders need the courts involvement to proceed with the foreclosure against the borrower. For many property owners these initial actions by the lender serve as a wakeup call. All of sudden the possibility of losing the property becomes real and the erosion of options becomes apparent. Owners in this situation who do not have the financial resources to bring the loan current and do not qualify for a loan modification or recasting of the loan have only two remaining choices:

  • Let the property be sold through the power of sale or foreclosure process, or
  • Attempt to sell the property themselves and satisfy the lender before it is out of their control.

Owners recognize that if their property goes into foreclosure or power of sale the likely bidders will be real estate investor/predators who will acquire the property at a significant discount. This discounted price will wipe out a significant portion of their equity to the extent that they may not have any equity left in the property. (Equity is the difference between what is owned against the property and the fair market value or what the property sold for under foreclosure or power of sale pressure.)
As professional real estate investor, who is interested in win win situations, it is prudent that you understand the process of both the foreclosure and power of sale process. This training will give you a solid understanding of the two main processes in Canada so you are able to have a working knowledge for both your investment portfolio and to help those unfortunate people who are facing this situation.

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