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Stop Power of Sale in Richmond Hill
What are Power of Sale loans?Power of Sale loans is one of the quickest ways to secure a loan for a piece of real estate & possibly property, that has been listed on the real estate market MLS. But what makes this kind of house sale different from other kinds of MLS house sales? When a property and its house is listed on the MLS as a Power of Sale, it has been listed because the home owners defaulted on their mortgage loan in some manner, and the lender has taken possession of the home and its property. Once a lender has legally repossessed a property, it is of paramount importance for it to be sold, so the lender can recoup the balance owing on the real estate dwelling & property if applicable.
How do stop power of sale loans work?Upon a lender listing a property & dwelling on the MLS, it is listed as a Power of Sale at fair market value (by law, the lender must list at fair market value, there is no way for the lender to raise the purchase price). This is very attractive to home buyers that know upfront that the dwelling & property can be purchased at a great price point, but the downside is... it must be purchased in its current ‘as in’ state and condition. Individuals who are looking for a fixer-upper house or a better deal on a home are enticed by Power of Sale listings on the MLS, and this is where Power of Sale loans comes into play. Lenders that deal in Power of Sale loans understand upfront that there is a need to close quickly to secure the realty deal and require the funds to do so. The property and dwelling are viewed as the bulk of collateral needed to secure a loan, but there is still an application process, credit check, credit history & financial information needed. The upside is that this process is executed more quickly for the borrower as there could be multiple offers on the Power of Sale property and dwelling.
How can loans prevent the bank from liquidating your home via power of sale?Power of Sale loans is the perfect way for securing a home and its property, without having to go through the motions of a time-consuming mortgage loan process. Power of Sale loans are offered with shorter payback terms, a bit higher interest rate, monthly payment conditions and tight loan contracts. The personal, gainful impact of Power of Sale loans is the flexibility of the lenders and these loans, for individuals who are given the financial ability and the funds to purchase the Power of Sale property & dwelling at a fair price point and not a lot of negotiating!
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