Foreclosure is a legal process used by a lender to recover an investment in a property. The foreclosure process in Brampton can only be started after a borrower has gone into default. A foreclosure can result in your home being taken away from you and losing all the equity in the property. If you are facing Brampton foreclosure we recommend that you call us for a free consultation. A foreclosure is a serious legal challenge, the sooner the homeowner acts the greater the chance that the homeowner can keep their home.
How do I default on my mortgage?
There are many reasons why a person could be in default of their mortgage, the most common is not making the mortgage payments. Other reasons could be non-payment of property taxes, no house insurance or letting the house fall into disrepair.
How do I know I am in Foreclosure?
In many cases, the lender or the lender’s lawyer may send a letter noting you are in default of your mortgage, this is not required but is done as a warning of pending legal action. The borrower must be in default at least 15 days before action legal action can commence. The lender’s lawyer will send a Statement of Claim which will outline the amounts in default. The Statement of Claim will say FORECLOSURE on the first page.
Talk to Lenders before Foreclosure
Lenders usually do not want to foreclose on a property, the foreclosure process can be time-consuming and expensive for the lender. In most cases, once the borrower has defaulted the lender will send notices and will not usually start the foreclosure process until after 3 months have passed. It is usually a good idea to talk to the lender and let them know what your present situation is and why you have not been able to make the payments. Try to arrange a reduced payment plan that you can presently afford with a large lump sum payment further down the road. Remember lenders do not want to foreclose on your property they just want you to keep making the payments. If the lender has decided to start the foreclosure process the legal documents must be filed at the local Supreme Court Registry for Brampton.
How to Stop a Brampton Foreclosure
Once the process has started you have a few options to stop a Brampton foreclosure. The first is to pay off the lender, usually, the lender wants the loan repaid in full, this may require getting another lender to provide the money. In some cases you may only be required to bring the mortgage into good standing, which means paying for any outstanding amounts and legal fees, this is cheaper and easier than paying off the full mortgage.
The second option, if you can not get any funding, is to sell your home. A foreclosure of a home in Brampton means that the homeowner will get probably get nothing for their property even if there is a significant amount of equity in the property. By selling the home before the foreclosure takes effect, the homeowner gets to keep any remaining funds once all the bills are paid.
For more information on how to stop foreclosures in Brampton please call one of our mortgage brokers.