Home sells for $200K less than outstanding $1.13M mortgage in Brampton

A Brampton home that sold for over $1.2 million two years ago has just been closed out at a loss of some $334,000.

The 3+1 bedroom, four bathroom home on Ridgemore Crescent in Brampton was listed for $979,000 in July and sold in late August for $931,000, according to listings on real estate website HouseSigma.

It last sold at $1,265,000 back in March 2022 under a “power of sale” mortgage according to online real estate watcher @ShaziGoalie, and the recent sale by MCC Mortgage is some $200,00 less than the outstanding mortgage of $1.13M million.

“Another one where the proceeds from the “Power of Sale” can’t even cover the outstanding mortgage,” he said in a post online.

A power of sale is a mortgage clause that allows lenders to sell a borrower’s property if they default on their payments.

Brampton’s has been teetering on a buyer’s real estate market with sales slowing down over the summer months, meaning sellers may need to consider competitive pricing strategies to attract buyers, while buyers can take advantage of the increased inventory and potentially negotiate better deals.

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That competitive pricing may not last long as a recent report found home prices will increase up to five per cent in some GTA cities including Brampton and Mississauga in the fall.

The report found some buyers are gaining more confidence as mortgage rates decrease and are slowly re-entering the market heading into fall, keeping prices relatively stable. Housing supply could become a larger issue once further interest rate cuts motivate buyers and spark more competition.

📢 More Horrific “Power of Sales” in Brampton 😔

📍Brampton, ON 🇨🇦

Another one where the proceeds from the “Power of Sale” can’t even cover the outstanding mortgage 😩.

MCC Mortgage just sold this one for $200k LESS than the outstanding mortgage of $1.13M 💸.

Bought in 2022… pic.twitter.com/YfS1vexfyI

— Shazi (@ShaziGoalie) September 3, 2024