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POWER OF SALE
There is a great myth and misunderstanding about
properties being sold under "Power of Sale". The general
comment is that "properties can be purchased for well below market
value". Related to other similar neighbouring properties
this could be true, but there is more to it. The
fact is that when a mortgagee sells the property under the Mortgage
Act and related mortgage documents they are acting as
"trustee" for all interests involved with the property including
their own. The mortgagee usually obtains appraisals to get
independent professional opinions as to the value and marketability
of the property. Order an
Appraisal Since the owner or mortgagors
of the property were not able to make the mortgage
payments they were also probably not able to upkeep the property and
may have deferred or not repaired many regular maintenance
items of the property. At the end of the
day the property maybe in a "rundown" condition. Roof
requires shingles, broadloom floors are worn or stained, hardwood
floors require refinishing, heating system
requires updating, kitchen or bathrooms are an older style and so
on... So, did the property sell for below market value?
No! The property sold for "market value" in relation to other
comparable properties that were better maintained. The
mortgagee is obligated to sell the property for market value. We at INHOUSE
Appraisal Corp. specialize in
residential real estate appraisals, valuations, and consulting in the
Greater TORONTO Area (GTA), Ontario Canada. Our Appraisers
are designated members of the Appraisal Institute of Canada. We provide a
wide range of real estate evaluations, valuations and appraisal assignments
for mortgages, employee relocation, accounting, selling, listing,
divorce, litigation and power of sale for Mortgage Companies,
Banks, Trust Companies, Credit Unions, Lawyers, Accountants, Real Estate
Agents, Financial Planners and Home Owners, For Sale By Owner - FSBO.
Our service area includes: Toronto, North York, Scarborough, Etobicoke, Mississauga,
Markham, Richmond Hill, Thornhill, Vaughan, Woodbridge, Pickering, Ajax, Whitby
and Oshawa. Regions serviced include Toronto, York Region, Durham Region and
Peel Region. Michael A. Roman, CRA, FRI, PLE, CRF is Senior Appraiser
and Real Estate Broker and has testified as an expert witness in
residential real estate. |
