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Stop Power of Sale in Ajax
What are Power of Sale loans?Have you ever wondered what a power of sale is and why it is so enticing to home buyers and house flippers? The answer is easy, power of sale real estate is always listed at fair market value and sold by the mortgagee (the mortgage holder). Power of Sale Loans are loans are designed specifically for real estate listed as a power of sale or foreclosure sale. At some point, the home owner had breached their mortgage agreement or defaulted in their mortgage payment, so the mortgagee took legal ownership of the real estate (listing it on the market) to recoup the balance of the outstanding mortgage, so it is placed up for sale…this is now called a power of sale.
How do stop power of sale loans work?Because the mortgage loan has an outstanding balance that needs to be paid in full, a mortgagee (a mortgagee is usually a bank) lists the property at fair market value by law and this attracts many buyers’ attention. Now, the race is on, if there are multiple buyers interested in making an offer on the power of sale property, then some buyers that do not have enough cash flow on hand, will utilize Power of Sale Loans. Power of Sale Loans can be seen as a speedy way of getting a loan processed and approved, as the real estate itself is considered for the collateral and if the buyer has a great credit history and a good sized down payment on hand (in some scenarios the down payment is not required), then the funds needed to purchase the power of sale property will be provided quickly.
How can using Power of Sale loans offer a personal and gainful impact?Having the flexibility financially to jump right on a power of sale property has big gainful impacts, the first of which is being able to purchase real estate at a ‘deal’. Now, keeping in mind that power of sale & foreclosure real estate is sold in their current condition and without the usual inspections, so it’s a ‘as in’ purchase. This is perfect for people that are interested in a fixer-upper or people that flip real estate professionally for profit. Power of Sale Loans basically saves the day for many home buyers because they are processed more quickly then other types of loans, buyers are quickly approved with minimal qualifying parameters and the overall experience is personally satisfying. Nothing is better then buyers achieving their real estate goals through Power of Sale Loans!
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