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Stop Power of Sale in Oakville
What are Power of Sale loans?A power of sale listing on the real estate MLS... this type of listing is especially attractive to home buyers, but why? Knowing what a power of sale is before indulging into what Power of Sale loans are, is a great way to get familiar with why these types of loans are important. Any home that is being held by a mortgage loan and its lender can legally take possession of that home should the home owner default on the mortgage loan in any way. If the mortgage loan lender ends up sizing a home and its property, then this home will be listed on the real estate MLS listing as a power of sale. When a lender places a home on the MLS as a power of sale, this means that by law, the lender MUST price the home and any property (if applicable) at fair market value, meaning the home will be sold at ‘as in’ condition at a market value purchase price (so a fair price point with no haggling to lower the price).
How do stop power of sale loans work?Power of Sale loans is the type of loan product that strictly deals with and is geared for power of sale homes. Lenders that offer Power of Sale loans understand that the borrower is interested in a dwelling that is listed on the MLS as a power of sale and will need to process a loan efficiently, yet quickly. There is an application process and yes, the home that will be potentially purchased is a security or collateral against the loan, which in turn speeds up this process. Upon approval from both the Power of Sale loans lender and the lender selling the house, the borrower can now complete the house purchasing process, with regular closing costs, fees and insurance. Power of Sale loans lenders may charge a higher interest rate then some other banking institutions, so it is a savvy, financial strategy for borrowers to quickly shop around (some lenders may waive fees or costs).
How can loans prevent the bank from liquidating your home via power of sale?House flippers that purchase houses at a lower price, renovate them then sell them for profit, tend to lean on Power of Sale loans lenders to have a speedy closing. Anyone who is interested in taking a chance with a house purchase that is sold at ‘as in’ condition at a lower price point, can also experience the positive gainful impacts! Power of Sale loans is the best way for a home buyer to move fast in the fast-paced real estate market, especially because dwellings that are sold at fair market value tend to have multiple offers from various buyers (so a fast offer is ideal).
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