Stop Power of Sale and Foreclosure

Power of Sale and foreclosure are two distinct legal actions that banks, institutional lenders, and private lenders can use to recover their investment if you default on your loan or fail to make payments. While both processes can result in the loss of your home, they are different procedures.​

Power of Sale is the most common legal action used by lenders to enforce mortgage repayment. This procedure allows the mortgage lender to sell your property. If your lender proceeds with a Power of Sale, they can seize control of your home and sell it quickly. The proceeds from the sale are used to repay the loan, as well as the lender’s legal and real estate costs. If there are any funds remaining after the sale, you, the borrower, are entitled to them.

Foreclosure is a less common but more severe enforcement action. Unlike Power of Sale, foreclosure allows the mortgage lender not only to sell the property but also to take full ownership of it. In a foreclosure, the lender assumes the title to the property used as security for the loan. The lender then decides how to recover the loan, and the borrower will not receive any remaining funds. If a lender intends to proceed with foreclosure, this will be outlined in the statement of claim, which will be sent to the borrower along with the notice of sale.