2nd mortgage power of sale

reese1 · May 31, 2007, 06:42 PM

I was just served with notice that my home is going into power of sale within 35 days, because of not paying my 2nd mortgage for the last 6 years, my 1st mortgage is upto date.
The problem is I thought it was paid since I never received a renewal in the last 6 years, and there was no attemp on their part to contact me. So now I'm faced with a power of sale, I asked if I could just pay off the 2nd mortgage which at the time was 21,000.00 when I first applied for it.
Their lawyer said fine but the new total is 94,000.00, out of that is 21,000.00 which was the origional loan plus acurred interest and legal fees?
So my question, does the statue of limitations limit the amount of time they can hold out for the power of sale.
Is there not a Law that would force them to power sale the property 3 to 4 months after missed payments rather than 6 years and an interest rate that is un heard of.
(Ontario Canada)

reese1 · Jun 3, 2007, 03:28 PM

Another thing to note looking at the power of sale form, it states that this is the third person that has become the mortgagee, which he came into charge on the 29th day of May 2007, and I was served on the 31st of May 2 days later, has this mortgage really been in arrases to this person does he not have to inform me 15 days later or at the very least notify me that he is the new chargee on the mortgage and for me to start paying him.
Also I was never notified from the change from the original mortgage to the 2nd chargee which was done back in 2000, maybe that is why no one informed me, what I have discovered does it make any sense or even a difference ion the situation.
Are they not required to notify me when theres a change in hands.

Dr D · Jun 4, 2007, 08:05 AM

Of course, the mortgagor needs to be notified when the mortgage is sold/transferred to someone else, so that you know who to pay. On the Notice of Sale, did it give a date when the sale would take place? In the AZ D of T, the sale cannot take place any sooner than 90 days from the date of the notice. Do you have any idea of what the value of the property might be? My advice is for you to gather every piece of paper, cancelled check, etc. associated with this transaction, and see a lawyer. Make sure that it is a Real Estate lawyer.

reese1 · Jun 4, 2007, 06:22 PM

I was served on May 31, they are giving me until july 9 to come up with 21,000, plus 300 percent for a grand total of 90,000.00, If they don't hear from me by than they will take over the property and sell it.
I think this guy bought the mortgage for 15,000.00 now he wants 90,000.00 claiming that is what is owed, 21000 at 17%. not bad for a 2 day investment.
Do I stand a chance if I counter sue, who should I sue the original person that fell to enforce the 15 day to 90 non payment. or this new person?
The more people I talk to say its not ethnical to let a mortgage go for that long and not take action on, knowing that it will get to a point where there will be so much interest the person will walk away.
I think the home is currently worth around 130 to 140,000.00.
theres 37,000.00 owing to the 1st mortgage and now the 2nd wants 90,000.00, so some people are saying they will accept any offer, so if someone offers 90,000.00 they will accept than they will pay off the 1st mortgage and than sue me for the remainder.
Is this legal fair, I don't know but hope some one with knowledge or who knows the Ontario law could elaborate a bit.

reese1 · Jun 6, 2007, 07:27 AM

jlsmith · Jun 24, 2007, 10:44 AM

Quote:

Originally Posted by reese1

I was just served with notice that my home is going into power of sale within 35 days, because of not paying my 2nd mortgage for the last 6 years, my 1st mortgage is upto date.
The problem is I thought it was paid since I never received a renewal in the last 6 years, and there was no attemp on their part to contact me. So now I'm faced with a power of sale, I asked if I could just pay off the 2nd mortgage which at the time was 21,000.00 when I first applied for it.
Their lawyer said fine but the new total is 94,000.00, out of that is 21,000.00 which was the origional loan plus acurred interest and legal fees?
So my question, does the statue of limitations limit the amount of time they can hold out for the power of sale.
Is there not a Law that would force them to power sale the property 3 to 4 months after missed payments rather than 6 years and an interest rate that is un heard of.
(Ontario Canada)

dod any one answer this questions? If there is a default in paymentgs don;t you just have to oay the past due payment?

jlsmith · Jun 24, 2007, 10:46 AM

I was just served with notice that my home is going into power of sale within 35 days, because of not paying my 2nd mortgage at the 1st of the saem month (1 pymt missed) years, my 1st mortgage is upto date. I have the missed payment now! Can I just opay the past due amount and get the mortgage reinstated?

Dr D · Jun 24, 2007, 07:46 PM

It seems like the original poster has left for parts unknown without as much as a fond adieu. For the last post, my advice would be for you to read the loan papers associated with your second mortgage. The 35 days till sale seems much too short. If your second is secured by a Deed of trust, you should be able to reinstate it by bringing the payments current, prior to a Trustee Sale.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!