ResolveSituations · Selling During Power of Sale
Can You Still Sell Your House During Power of Sale?
Usually, yes. Power of sale gives your lender the right to sell the home, not ownership of it. Until the lender sells it, you can list it, accept an offer and close. A sale you run at market value, with you still in the home, usually leaves you better off than waiting for the lender to sell.
- Complex, time-sensitive files, handled
- A network of cash-ready buyers who can close
- Private, and on your timeline
Taran Aujla, Salesperson · former real estate lawyer · HomeLife G1 Realty Inc., Brokerage
When you can sell
You can sell until the lender does.
You do not need the lender’s permission to list your own home. If the sale pays the mortgage, the arrears and the lender’s costs in full, the lender is simply paid out from the proceeds on closing, like any other sale.
If you have just received the notice, start with what a Notice of Sale means and what happens next.
If the price falls short
If the sale will not cover what you owe.
Many power of sale files are close to the line. If a fair sale will not pay everything, the lender has to agree to discharge the mortgage for the net proceeds, and any balance normally remains a debt.
A sale at full market value still matters in that case. The higher the price, the smaller the balance left owing, and the sooner the sale closes, the less interest and cost is added to it.
Why sell first
Why your own sale usually leaves you better off.
A lender’s sale tends to happen months later. Interest keeps running, and the lender’s legal fees, appraisal, commission and other costs come out of the sale before anything is left for you.
Homes sold by a lender are also marketed as power of sale listings, which draws buyers looking for a discount. Your own listing is simply a home for sale.
With Resolve
What you get.
A Salesperson who prices the home from real sales near you, keeps your lender informed, and sends every offer to the lender the day it arrives. You stay in the home while it sells, and your situation is not advertised.
For the full picture, read our guide to power of sale in Ontario.
Common questions
Situations · Selling During Power of Sale, answered.
- Can I sell my house if my lender has started power of sale?
- Usually, yes. Until the lender sells the home itself, you can list it, accept an offer and close. The lender is paid from the sale proceeds on closing.
- Do I need the lender’s permission to list my home?
- No. You do not need permission to list your own home. The lender’s agreement matters at closing: the mortgage has to be paid out, or the lender has to accept the net proceeds, for the sale to close.
- What if the sale price is less than what I owe?
- The lender has to agree to discharge the mortgage for the net proceeds, and any shortfall normally remains a debt. A sale at full market value keeps that shortfall as small as possible.
- Can I stay in the house while it is for sale?
- In most cases, yes, unless the lender has already taken possession. A lived-in, well-kept home usually shows better than a vacant one.
Where we work. Resolve represents Ontario homeowners across the GTA (Toronto, Peel, York, Halton and Durham), Hamilton, Kitchener and Waterloo.
We coordinate with the lawyer on every file. Legal, tax and financial questions sit with your own counsel. If you do not have one yet, we can recommend a lawyer who handles these matters.
What This Costs
Nothing upfront.
We’re paid only when the sale closes, at standard commission. No hidden fees. No retainers. The first call is always free.
The Next Step
A private conversation, on your terms.
Nothing public, and nothing moves without you. Some conversations do not go further, and that is fine. The point is for you to see what a clean sale looks like on your terms.
Other situations we handle