One of the worst letter’s a Calgary home owner can receive is a foreclosure letter from a lawyer. If you have received a foreclosure notice the following information may help you. We can help stop the Calgary foreclosure process and prevent an eviction by providing you with alternative financing. Our mortgage team has many years of experience in stopping foreclosures in the shortest time possible. We can provide the money you need and eliminate the stress of going through foreclosure. Call us now for a free consultation regarding your situation.
Before any legal action can start the home owner must be in default of one of the mortgage terms such as not paying property taxes or house insurance. The most common cause of default is non payment of the mortgage. A foreclosure will have court involvement and lawyers, the legal process can be timing consuming and very expensive. Therefore it is very important to act quickly to save money and your home.
Once you are in default the lender can file a Statement of Claim, the home owner can file a Statement of Defence if they choose to. If the home owner does not file a Statement of Defence the courts can proceed with a default judgement against the property. The mortgage lender then can ask the court for permission to sell your home. Your home will be put up for sale with a court ordered redemption period, which can be up to six months. If the owner does not pay all the required amounts before the redemption period expires the house will be sold.
If you have missed mortgage payments or believe that you will not be able to make future mortgage payments you should talk to your present mortgage lender. Most lender’s do not want to take your or put you into foreclosure. Lender’s can delay legal action if they believe your financial problems are short term or if you have another financial solution.
There are a few ways to stop a foreclosure in Calgary, the most straightforward is to pay your existing lender off and get a new mortgage. Another option is to sell your home before the mortgage holder takes it. The worst possible option is to let the mortgage lender take your home and be evicted.
We work with the homeowner to review all the possible options available. Many home owners want to keep their home, in many situations the home owner can keep their home, but in some cases keeping the home is not possible.
In order to get new financing for your home most lenders require a good credit score, proof of income for the past 2 years with Notices of Assessment from the Canada Revenue Agency and at least 25% equity in your home. If you do not have an income or your credit score is too low, we also have lenders that will provide financing while you try and sell your house.
All cost related to the foreclosure including interest, your lawyer and the lenders lawyer, court costs, real estate agents will be paid by the home owner. Therefore it is important to act quickly before all the legal fees and court costs eat up all the equity in the property. There is also the possibility of a shortfall when the property is sold, in this case the lender can try and garnish the wages of the homeowner until the debt is paid off. In some cases personal bankruptcy is the only option left.
An eviction is one of the last steps in the foreclosure process. Once the house is sold to a new buyer or the lender takes over the occupants of the house can be evicted by a court order. If the court has given a specific redemption time period, which can be as long as 6 months, the occupants of the house can not be evicted during this time period.
To avoid and prevent a Calgary foreclosure give us a call to discuss your situation