Add Listing
Your search results

Purchasing a Power of Sale Home

Purchasing or Stopping a Power of Sale Home in Scarborough & the GTA

Understand Your Options — Act Fast with Help from the Krzewski Group

If you’ve missed multiple mortgage payments, your lender may begin a Power of Sale process to recover the money they’re owed. While this may feel overwhelming, you have options—and time is critical. At The Krzewski Group, we’ve helped homeowners across Scarborough and the Greater Toronto Area understand their rights and take action to either stop a Power of Sale or sell the property on their own terms.

What Is a Power of Sale?

A Power of Sale is a legal process in Ontario that allows a mortgage lender to sell your property if you default on your mortgage. It’s different from a foreclosure in that:

  • With Power of Sale, the lender sells the home and returns any remaining profit (after fees and mortgage payoff) to the homeowner.

  • With Foreclosure, the lender takes full ownership of the property and the homeowner receives nothing.

In Ontario, Power of Sale is far more common than foreclosure due to its quicker timeline—typically 4 to 6 months, compared to over a year for foreclosure.

Why Do Power of Sales Happen?

Most Power of Sale proceedings are triggered by missed mortgage payments, but they can also be caused by:

  • Failure to keep property insurance active

  • Defaulting on a second mortgage

  • Violating terms of the mortgage agreement

Unexpected life events—like divorce, illness, or job loss—can quickly spiral into missed payments. Unfortunately, many homeowners don’t have a backup plan when financial support falls through.

What Are the Risks of Doing Nothing?

If you don’t act quickly, the lender will continue the Power of Sale process—and the costs will escalate fast. On average, a Power of Sale can result in $20,000–$30,000 in legal and administrative fees being added to your mortgage. These costs reduce any equity or profit you might have had from the sale.

What Can You Do to Stop a Power of Sale?

1. Replace the Mortgage Before It’s Too Late

One option is to pay off the defaulted mortgage using a new loan. This can be challenging with traditional lenders, but there may still be options depending on your home’s equity. If you have sufficient equity, we can help you explore every available path and connect you with the right professionals.

2. Sell the Property Before the Lender Does

In many cases, selling the home yourself is the smartest financial move. If the lender sells your home, their only goal is to recover their loan—not to get you the best price.

By selling the home with The Krzewski Group, you:

  • Avoid additional Power of Sale fees

  • Take control of the sale price and timeline

  • Maximize the equity you walk away with

  • Avoid a rushed, underpriced lender sale

Our team has deep local experience in Scarborough and the GTA, and we can get your home on the market fast with full marketing exposure and professional support.

Buying a Power of Sale Property? We Can Help.

Are you a buyer interested in purchasing a Power of Sale home? These properties can offer opportunities—but also risks. It’s crucial to understand:

  • The legal process and sale conditions

  • Whether the property is sold “as-is”

  • What inspections and protections you’re entitled to

Our agents can walk you through everything you need to know, including how to safely purchase a Power of Sale property while avoiding costly surprises.

Speak to a Local Real Estate Expert Today

If you’re facing a Power of Sale or are interested in purchasing one, the most important thing you can do is speak with a real estate professional now.

📞 Contact The Krzewski Group today for fast, confidential advice and a clear strategy.
We’re here to protect your interests, maximize your options, and help you move forward with confidence.

Compare Listings