Why Selling Before Power of Sale Is Better
When a lender exercises power of sale, their goal is to recover their loan — not to maximize your proceeds. Properties sold under power of sale typically sell for 5–20% below market value at auction. You receive whatever is left after the mortgage, legal fees, and lender costs are deducted.
If you sell before the lender acts — even to a cash buyer at below MLS price — you typically receive significantly more equity because:
- You control the sale price negotiation
- You avoid lender legal costs and power of sale fees being deducted from proceeds
- A cash buyer's offer is typically higher than a power of sale auction outcome
- Your credit file shows a voluntary sale, not a power of sale — an important distinction for future borrowing
The Window You Have to Act
Under Ontario's Mortgages Act, after receiving a Notice of Sale you have 35 days to remedy the default (pay all arrears, penalties, and lender legal costs) before the lender can proceed with the sale.
If you cannot remedy — and many homeowners in this situation cannot — you need to sell before the lender does. NestBridge can often complete a sale within 7–14 days. The 35-day window may be enough.