There are many compelling reasons to own your own home. First and foremost there is the simple pride of ownership that comes with knowing that you are a homeowner.
When you buy a property there is also the added flexibility to undertake whatever types of renovations or fixes you may want to undergo currently and/or down the road. There is also the freedom to determine landscaping options and increase the overall curb appeal of your home.
Ontario homeowners are in the advantageous position of seeing significant property gains. Throughout 2020 and into the third quarter of 2021, Ontario property year-over-year increases have been as much as 31% in the GTA and central Toronto. Home sales have also seen a marked increase during this same time despite the ongoing Covid-19 pandemic. Homeowners in Thunder Bay, Sudbury, Sault Ste. Marie and North Bay have also seen dramatic increases in property values.
While good news for many Ontario homeowners, the pandemic has still hit some families quite hard with changes to employment arrangements such as reduced hours, or temporary layoffs. Paying all housing expenses while meeting the monthly mortgage payments may have become a financial strain.
If an Ontario property owner has fallen behind in their monthly mortgage payments this is referred to as falling into mortgage arrears. A lender has a choice to start default proceedings if there is a missed or incomplete mortgage payment.
Most Ontario lenders will choose to use the method default mechanism referred to as a Power of Sale. Although another default method that is occasionally utilized by a lender is to start foreclosure proceedings.
There are ways to stop a power of sale or foreclosure on your home. One method is to sell your house in Ontario through a buyer at market value with a discount. There are established buyers in Ontario who will buy your house before a lender can take possession.
Selling Options for Ontario Homeowners
If a power of sale or foreclosure has been initiated on your property, it is to your advantage to try to look at the different methods there are in place to help stop a lender from eventually evicting you from your property and taking back possession of your home.
There may be other compelling reasons to sell your home, condo or cottage quickly:
- Home is in need of significant repair and may be hard to live in
- Rental tenants that are causing problems
- Looking to downsize and can’t sell
- Fire damage
- The economic realities of a divorce
- Cottage is always vacant
- Condo maintenance fees are high
- Liens on the property
Although taking out a second mortgage on your property is one such option. An immediate method open to Ontario homeowners is to approach an established Ontario buyer who will appraise your property and buy your property at fair market value with a discount.
There are several types of selling options for Ontario homeowners including:
- Real Estate agents that specialize in quick sales- All real estate agents are experienced in buying and selling homes for clients. There are however very few Ontario-based real estate agents that are specialized and experienced in very quick sales (the sale is completed in typically a week).
- An Ontario homeowner can sell to family or friends- An Ontario homeowner facing a potential power of sale or foreclosure on their home can always approach family or friends who may be able to buy the property before the threat of repossession of the property.
- An Ontario homeowner can approach a cash home buyer- There are home buyers that are well established in Ontario who will be able to buy your property very quickly for cash. A home buyer will assess a recent appraisal of your home and look at the current condition of the property. They will buy the property in the condition it is currently in for cash with a discount.
Advantages for Utilizing a Home Buyer to Sell a Home Quickly
In a nutshell, the cost savings involved in avoiding a power of sale is significant. Selling your home to a cash home buyer will prevent the possibility of paying exorbitant costs involved with a power of sale, which can run up to $30,000. You will not be on the hook for renovation costs or fix-up because the property will sell as-is. No real estate agent is required and you will pay no commission to a real estate agent.
Ontario home buyers can be companies specializing in quick home sales or individuals. Of all the routes to a quick home sale, selling through an Ontario home buyer is far and away from the fastest method. The turnaround time can be as little as 48 hours.
Other advantages can include:
- You can have control over the closing date
- You do not have to put the time into cleaning or dealing with repairs
- You will not have to put time and energy into finding a suitable real estate agent
- There are no real estate commissions, fees or any contracts with an agent which will require you to sell only through them
There are Ontario-based mortgage lenders including Mortgage Broker Store who are very experienced and willing to buy houses quickly for cash. It could be a route that is worth exploring when an Ontario homeowner is faced with the potential power of sale or foreclosure on their property.
Steps to Take to Sell Your Home Quickly
When an Ontario homeowner has fallen behind on a mortgage payment it is a very good time to restock and look at your overall financial picture. If meeting all housing costs and other monthly liabilities is going to be difficult, it is best to look at ways to avoid a potential default proceeding being initiated on your home.
Take the necessary steps to sell your home quickly:
- Have an appraisal of your home by using a reputable Ontario-based appraiser
- Look at all your monthly liabilities and try to pay down the higher interest debts first
- Research the different home buying options
- Talk to family and friends to see if selling through them may be an option
- Arrange a meeting with a home buyer or mortgage lender specializing in quick sales to see what option can be arranged