Let''s face it, if you are facing the possibilities of losing your home due to a power of sale in Mississauga and you think that you may never be able to purchase another home anytime soon. Keep reading.

I am going to share with you different steps you need to prepare yourself for that transition down the road. First, if you lost your home because of a power of sale or you''re about to, don''t give up. The worst thing you can do right now, is to do nothing.

First: Get a copy of your credit report from Equifax to see what a potential creditor will see and immediately start making repairs to clean up any negative infractions, stay away from credit repair companies.

Second: While you are rebuilding your credit, start putting together an emergency fund. Start off by saving three months of your mortgage/rent payments and three months of car payments for obvious reasons.

Three: Go to your book store, library or online at www.thetorontorealestate.com/MISSISSAUGA_HOMES/page_1998816.html and start educating yourself on rent to own purchase. I mention rent to own because of your temporary credit and money requirements. You can normally get into a house with a small down payment and good credit . Just be prepared to purchase that property down the road. That''s why you need to clean up your credit and who knows, you might start making money with this new found information.

Four: Start putting together your financial plan. Set goals for your future retirement, college for you or your children. Start a business. Find a financial planner one who will work with you and his motivation is not to sell you something you don''t need, just so he can get a commission.

When the time comes in a few years after you have put a down payment on your rent to own home, rebuild your credit, raise your credit score; set aside an emergency fund and designed a financial plan, then you will be ready to buy your next home.

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Foreclosure proceedings in Ontario are quite speedy, as the proceedings are usually laid out in the mortgage documents. Toronto Power of sale was initially developed in Ontario by lenders who wanted a faster way to dispose of property and recover debt. As a result, they began to include power of sale provisions in mortgages that would allow them to dispose of property under the borrower’s default and without having to resort to the courts.Toronto Power of sale is now part of the Ontario Mortgages Act.

The Mortgages Act refers to two types of Toronto power of sale: Contractual and statutory. Contractual Toronto power of sale is when the mortgage documents have included power of sale provisions. Statutory power of sale is when the mortgage documents have not included Toronto power of sale provisions. While statutory power of sale is very rare, the lender can still exercise power of sale as long as the borrower has defaulted for three months or more.

Both types of Toronto power of sale are started by giving a notice to the borrower after 15 days of default. The notice must be given to anyone having an interest in the property, including subsequent encumbrancers, statutory lien holders, or people who have advised the lender in writing, that they have an interest in the property.

The notice is attached to the Mortgages Act, and is called a Notice of Sale Under Mortgage. It advised of the lender’s intention to exercise the power of sale, and includes details of the mortgage, such as:

• The date the mortgage was made.
• The parties to the mortgage and the property mortgaged.
• The amounts owing.
• A warning that if the amounts owing are not paid by a specified date, the lender will sell the property.

If the power of sale is contractual, the borrower has 35 days to pay, unless otherwise stated in the mortgage agreements. If the power of sale is statutory, the borrower has 45 days to pay. The lender cannot do anything further within this “redemption” period, but by paying the amounts owing, the borrower can redeem the mortgage.

Once the redemption period expires and the borrower has failed to correct the default, the lender can sell the property. Under power of sale, the property can be sold by auction, private contract, or tender. Usually the property is listed with a real estate agent and placed on the market for sale. To ensure that the property comes to the attention of a large segment of the market, guidelines have been set up, including; listing the property with a multiple listing service, obtaining appraisals, and ensuring the listing is for the usual period of such properties.

Once the property is sold and if there is any surplus, the lender must account to the borrower(s), and other subsequent encumbrancers. The Mortgage Act requires that the proceeds of the sale first be applied to the cost of conducting the sale, then to interest and cost owing under the mortgage, then to principal money owing under the mortgage, next to pay any amounts due to subsequent encumbrancers, and finally to pay tenants’ security deposits.

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