Power of sale

Power of sale is the route most Ontario lenders use after a serious default. The lender sells the home to recover what's owed; any surplus after the debt, costs, and other charges goes back to you. It moves faster than judicial foreclosure, so timelines are short.

Under Ontario's Mortgages Act, the lender can serve a Notice of Sale once the mortgage has been in default for at least 15 days, and can't sell until at least 35 days after the notice. Most power-of-sale properties are then listed and sold on the open market through a realtor, not auctioned. The window to act is real but narrow: bringing the mortgage current, refinancing (often via a private lender that can fund in days), or selling on your own terms can stop the process before you lose equity.

Because equity is on the line and the clock is running, this is a situation where specialist advisors and fast private financing matter most. The worst move is waiting.