In Ontario, a power of sale lets a mortgage lender sell a property after the borrower defaults, without taking ownership of it. It’s the route lenders almost always take in this province — faster and less costly than foreclosure, which transfers title to the lender through the courts.

The lender must take reasonable steps to get fair market value, but it isn’t chasing top dollar — it needs to recover the mortgage debt, on a timeline. Motivated pricing, as-is condition, and shorter exposure windows are why power-of-sale properties regularly close below comparable sales.

These properties are typically sold as-is, where-is — no seller warranties, and often no chance to negotiate repairs. Any surplus above the debt goes back to the homeowner, so lenders still price defensibly. A mortgage pre-approval and fast due diligence matter more here than in any other segment.