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29th March 2019BY Qasim Nihang

Power of Sale is a standard clause in a mortgage document giving the right to the mortgagee (the lender) to sell the property in the event of default in order to repay the mortgage debt or what was owed by the borrower.  In other words, it authorizes mortgagee to sell the property when mortgage payments are not met.

The Notice of Sale has a redemption date that allows borrower to have 40-45 days to bring mortgage in good standing plus any extra fee or charges. A lawyer notice regarding the exercise of the Power of Sale is given until the default has continued for at least 15 days. Also, sale cannot be made for at least 35 days after the notice has been given. If the homeowner pays the mortgage and satisfy the mortgagee under the Notice of Sale, prior to the end of the redemption date, the Notice of Sale is voided. If the homeowner does not pay by the end of the redemption date, the process moves to the next step that legally allows lender to foreclose on the property.

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