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Ontario residential property

Power of Sale

Stop the Forced Sale of Your Home. There is Still Time to Act

We move fast to stop the power of sale process, preserve your equity and give you time to stabilize your life.

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Stonefield Capital provides emergency private mortgage refinancing for homeowners facing power of sale, stopping the forced sale process by paying arrears, legal fees, and penalties in full. During Ontario's redemption period, we even try to negotiate with your existing lender to minimize penalties. We offer same-day commitments and close within days, assessing on property equity and exit strategy, not the credit history or income disruption that caused the default. Typical terms of 1 to 12 months give borrowers time to stabilize and return to conventional financing, or give them the comfort and time to sell on their own accord.

How We Help Homeowners Facing Power of Sale

When a homeowner falls behind on mortgage payments and receives a Notice of Sale, the clock starts running. The existing lender is moving toward a forced sale of the property with huge penalties that takes reduce your remaining equity.

Stonefield Capital steps in with private mortgage financing that pays the arrears in full, stops the power of sale process, and gives the homeowner time to stabilize or sell the property on your own accord. We assess the deal based on property equity and exit strategy, not on the circumstances that led to the default.

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Stonefield Insider Tip: Act Early — Every Day Counts

Once power of sale proceedings begin, the lender's legal costs start mounting and those costs get added to what you owe. The earlier you engage a mortgage broker or contact Stonefield directly, the less expensive the solution becomes. Waiting makes the deal more difficult to finance and significantly more costly. If you've received a demand letter, even before a formal Notice of Sale, that's the time to act.

What Triggers a Power of Sale and How We Respond

Every day that passes without a solution reduces your options and increases penalties. Act fast to preserve your equity.

Mortgage Arrears

Fallen behind on monthly payments. The lender issues a Demand Letter and then Notice of Sale.

Tax Arrears

Property tax arrears have triggered a municipal lien that the first mortgage lender is now acting on.

Job Loss or Income Disruption

A temporary income gap led to missed payments. The equity is there but the ability to pay isn't.

Divorce or Separation

One party stopped paying and the property is now in default.

Business Downturn

Self-employed borrower hit a rough patch. The bank won't restructure, we will.

Redemption Period Expiring

The 35-day redemption window is closing. Every day counts and we can close fast.

The earlier you act, the more options are available. Contact Stonefield or a mortgage broker as soon as you receive a Notice of Sale.

What Happens After the Power of Sale Is Stopped

You Keep Your Home

Once funded, the default is cured and you retain full ownership. No forced sale and no more penalties.

Short-Term Bridge

The private mortgage is typically 3 to 12 months, designed to bridge the gap between crisis and stable financing.

Rebuild on Your Terms

During the term, you work on rebuilding credit, stabilizing income or preparing the property for sale on your terms, not the bank's.

Frequently Asked Questions

How much time do I have to stop a power of sale in Ontario?
In Ontario, the lender must cease legal actions for a period of at least 35 days after a notice of sale, this is the redemption period. During those 35 days, you have the legal right to bring the mortgage back into good standing by paying all arrears, fees, and accrued legal costs. The earlier you act, the less those legal costs have grown. Waiting until day 30 of 35 makes the deal materially more expensive. Contact Stonefield or a mortgage broker the moment you receive a Notice of Sale.
Will a power of sale ruin my credit permanently?
A completed power of sale causes serious credit damage but it's not permanent . Stopping the process before the sale completes limits the damage significantly. Using a Stonefield private mortgage to cure the default preserves ownership, stops the credit hit and gives you the runway to sell on your own terms or remedy your financial situation.
How does a private mortgage stop the power of sale process?
Two structures. Option 1: A new private first mortgage pays out the defaulted lender entirely, replacing the first mortgage and ending the power of sale. Option 2: A private second mortgage funds only the arrears, accrued interest, legal fees, and penalties — leaving the existing first in place. Once the default is cured, power of sale proceedings halt and the borrower retains ownership. Stonefield issues same-day commitments on these files.
What is the exit strategy after a power of sale refinance?
Two main exits. (1) Voluntary sale on the borrower's timeline — not the bank's forced-sale timeline — which preserves more equity than a power of sale would. In both cases, the private mortgage provides the runway to exit on the borrower's terms. (2) Refinance into a conventional mortgage within 12 months once credit has been rebuilt, income stabilized, or other debts paid down.
Does Stonefield require income proof to stop a power of sale?
No. Power of sale files almost always involve income disruption — job loss, illness, business downturn — and we underwrite with that in mind. No income verification, no employment letters, no minimum credit score. The decision is based on property equity and a realistic exit plan. If the equity supports up to 70% LTV in the GTA or 65% in secondary markets and the exit is sound, the deal gets funded.

Facing Power of Sale? Act Now.

Same-day commitment. Equity-based. We move fast because your timeline demands it.

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