All calculators
Power of Sale WorksheetSurplus / ShortfallLive
Expected sale price
$
$0$10,000,000
First mortgage payout (principal + arrears + interest)
$
$0$10,000,000
Second mortgage / other encumbrances
$
$0$5,000,000
Enforcement costs (legal, realty commission, taxes)
$
$0$1,000,000
Enter the actual figures from the mortgage statement and cost estimates — this tool applies no assumed interest rate or penalty. Under a power of sale the mortgagee must account to the mortgagor and subsequent encumbrancers for any surplus.
Live analysis
Projected surplus$215,000.00
Expected sale price$750,000
Total to discharge$535,000
PositionSurplus
Breakdown
Expected sale price$750,000.00
First mortgage payout− $500,000.00
Second / other encumbrances− $0.00
Enforcement costs− $35,000.00
Surplus to account for$215,000.00
Surplus after the secured payout and recoverable costs. The mortgagee holds any surplus in trust and must account for it — to subsequent encumbrancers, then the mortgagor — under the Mortgages Act, R.S.O. 1990, c. M.40.
A power of sale requires a Notice of Sale under the Mortgages Act with a redemption period (generally not less than 35 days) before sale, and the mortgagee owes a duty of good faith to obtain a proper price.
Estimate only — not legal advice. Figures depend on the mortgage statement, adjustments and the actual sale. Confirm with the solicitor of record.