Power of Sale
Jim Morrisson (firstname.lastname@example.org) Lindsay King (email@example.com) Tom Kennedy firstname.lastname@example.org
JCT: Gentlemen. I'm sorry about the delay in responding. What with two recent elections and planning for my European speaking tour, it fell on the back burner and was missed until now.
>Can you offer any advice or details about the Anti-foreclosure kit >to Jim Morrison? tjk :) JCT: The Anti-Foreclosure kits have fallen out of use since the Ontario Supreme Court ruled that there were no more automatic stays upon appeals of foreclosure decisions. The whole purpose of the kits was to stall the eviction process while we argued and that can't be done anymore without an judge's approval. Right now, the best delay tactic is the 6 months one gets when we file a "notice to redeem" which grants that we accept we have to give up the home in 6 months if we haven't. It gains more time than the foreclosure kit could.
>>Lindsay King who I am working with on the Family Life Foundation >projects, said to get in touch with you about a predictment that >befell me this afteroon. The deposit insurance corporation of >Ontario, who took over from my mortgage holder (bread and roses >credit union) when they went out of business, has said they are going >to put the property (a side by side duplex) on power of sale. JCT: As for "power of sale," I've always explained that this is really "power of bluff," and relies on the home-owner giving up the home without a fight. I've always recommended that homeowners give the impression that they are going to abide by the "power of bluff" and then when the day comes that they should have been out, plead that they had nowhere to go. The point is that there is nothing the bank can do if someone fails to obey the power of sale. It is bluff. Banks always need a judge's signature on a writ of possession before they can evict no matter what any "power of sale" says. Power of sale is simply a mechanism whereby the homeowner can be bluffed out of of the home without their having to go see a judge. Once their bluff has been called, then they have to start a court action which may take a few months. It's at this stage that the foreclosure kit can still be used if wished to provide an affidavit of defence. But once that's thrown out, there's no more grace via appeal and it's simply up to the bank how long they wait before going to the sheriff.
>They cite a lot of defaults on my part failing to take into >consideration the temporary nature of the defaults associated with >developing a Success Story Consulting business on local economic >development. The decision also was based upon an erroneously low >appraisal discounted 20% less than one made in 1994 which was already >discounted 20% to allow for the drop in real estete prices between >1989 and the next few years. JCT: None of these arguments are valid to a judge who must simply rule that the mortgage was violated no matter what the reason. It may count towards getting him to allow a few more months before eviction but can't really stop the process.
>Lindsay said you might have some suggestions including a kit useful >in forestalling foreclosures. I want to maintain operation of the >property. It is a pilot study in affordable housing, and linked to >the local economic development initiatives in the village (Millbrook) >near Peterboro. The tenents are single parents and there are 4 >children involved. It is a healthy place to raise kids. We need more >of them and there is room for more on the cul de sak. Best Regards, >Jim Morrison. JCT: Your best bet is to act like you're obeying the power of sale but then stand firm at the last moment. Keep talking like you're trying hard to get them out to forestall court action as long as possible but once court action does start, any kind of affidavit of defence will do though our anti-interest-rate defence might startle them the longest. Then it's just a matter of getting ready for the sheriff. But do make it all the way to the sheriff stage. Do not give up to their bluff. I'll be back in Ottawa around June 14-16 and could search out an Affidavit of Defence. Contact me before then if one is necessary. Lindsay, you could do me a great favour. I should be passing through Toronto on Sunday June 13. I need some examples of Toronto Dollars for my European Tour. Would you have the time to visit their offices and get me two full series of all their notes before then which I could pick up as I pass through. And do join our discussions at email@example.com. It's where I cross-post all my new material. Or let me register you. Your input would be well appreciated.
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