Canadian Champion (Milton, ON), 15 Feb 1997, p. 29

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What-s power of sale? A Power of Sale cron whmn un cwaer of a gcei nbebmk liseir mongage paymients. Tise aicilgae Sentier imseai dof the property for sale to the public under their rigit contiained in 111e mouirgage Inani agreement.' On tise surface, Power of Sale priperlies ntay appear la lie excellent buys for somte peeple. Generally. tihe pricc Isud bce attictive and thse morigage contpany is axicus In seli. Howcver, there are thrce arcas tisai sisould conceni any poicuttial isoyer. FiN. even if lte buyer maie an offer tisati s accepte there is tio guar- aite ilsey wilI actually gel tim prcpety uniti te date of closing. Tisais isecause lte curent owner is tise ngit In, redeem tise pmopesiy by paying ouithlie mcrIgage up Io tise lasi da. Tisa mea tise cwtte.r as cite cf bis options, coutl accept anotiser effet besides tise cote presented to lthe mort- gage leader. So. if cote is ttuying a Power of Sale, dcn'( expeci te niove in Qit te closing date. Maec plans t i ina afier tise date. Secondly. huyers cf Power of Sale prepesiies buy it "as is.1 The mort- gage lender is under nso obligation. nor will N mraite any cisanges to tise pixiperty. FHaally. iisere are tic warranties iy lie seller as tu whtler lise *cisaltels, sucis as Viances. wI bie part of lise sale.ý If you çan lise with t lese tisre aas cf cencern ten ituying a Pow-er cf Sale ptcpet¶y is an avenue te explore further. Be practical with mortgages - Your dream htome lecccmes a nîgistisare when ycs end up 'isouse penr wîiis mest cf yosr money gcîng 10 pay for lise m"egage and halle lefi cver for enjoymrnt Wltenutyng ahohts. you need iocpmCi- cal anid realistic. Over.extetiditsg yousrelf finan- cially is lise quicircit way to destroy the excite- tient (if owussng your own horne. A ral estate prilcisiotial can bnlp you find lihe home cf your dream.s a realior cati alsti ait you in evaluaîting mîurlgagc option. and uhlaining fitianuing aitie moit attractive prevailing raie. In tise mteanlîme. here are sone nwry% hI deler- minc your tlffordabtltiy quotient. Seiling a maximum price range i% more simportant titan simply estatslisiing an spper pnicr hiitihcatise unanticipaied cos cosld pusit ycasI ini tcuse pois? danger zone. To dcicrm-itse yeur affordaliîy prie range, yon mait calculate twc arneunis. tise ameunt cf cash ycu cati afford in pul icwaruls the puisase (th dowti payttenil aNý, maxitMim arrimuit of cati <mcrigage) you Mccmfcitalily carty. A morigage cover. lise differetice between th1e juurdlase price and ycur dcwn payaient. Tise langer thN dowtt paymenl. the les you bave Ic iscncw. iN esmfaller ycuar rnniily ascugage payment anbdiise lower ycur cost cf interent over the terni cf lis morigage. Se il pucMily maires sense lu put dosen as mucit cf ynnr own money as possible. Ycu sisould keep a cash reserve for utiexpees' cd expeases and sci typical "puai purcitase" expeanes as land iransfer las, lega féex. mort- gage arrangemesa. movlng expetises. new fur- nisiigs and appliances. flue firsi sîep iowards est.sbltsiting a maxi- mum motigage lit is to calculale a montisly payaient you cas affced. Fiiaiteial institutions do ibis hy calculating your delit-service ratic. Toi calculale your deiti-service ratic, lis( ail ycur catis (car, personal lutis, mnt«iy credt çard balatnces). Thse suits of tisese kian paymeals and yuiur meilgage payaient (încluduulg princi- pal, interest and taxes) sitculd not exceed apprcximaiely 40 per cent cf ycur grcsti ncome. Tise ecrigage paymeni and taxes Iud not exceed apprcximately 30 per cent cf your gross inconie. Tise sire cf lte mirgage ycs van arrange. isased on payments yeu cati affctd. depeads on mnierest raies. Tise lcwer thN raies. the lurger the pcsihle morigage nid lise mncie affordable the iscusnng is Bat tisere arr cter monegage tennis tc ¶ýonsid- er a. vieil. How open is the moilgage? Wculd prepaymenl bce allowed? Is lise aicrigage afferdable' Discuss your mortgage options wisI a realtcr. ycur hanker or a funancial adv,- ser. EnaIlisis a liait and stick la il. The usual source cf aicuigage fonds is a lend- ing instituicn tai determines lise Maximum Iran allcwed. But tisere aim cter .ouce cf fuing wo nds aIeu can ltelpt yots. rn< St huV.S5 Mil

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