Many people ask us: “Can you stop foreclosure in Calgary?” The answer is definitely, “Yes.” Let’s get into some details to understand the nature of foreclosure better and review your options.
The foreclosure process could easily be the most complicated yet, the simplest thing you can get involved in, especially if you live in Canada. You could forfeit your home in a matter of seconds over default or delay. As a lender or a borrower, you need to have the best strategies possible to avoid foreclosure. It would be best if you also had an idea of where to get the best professional help when faced with foreclosure proceedings and the other essential things that come with it. Instead of foreclosure, several factors come into play.
Here are some of the easiest ways to help you understand the concepts:
WHAT DOES FORECLOSURE MEAN?
Banrate.com explains foreclosure as a position where a lender (usually a bank) becomes the owner of a buildingS when a borrower owes them and refuses to pay. It is a common term for people involved in real estate. There are procedures that your bank or the lender has to follow in a bid to recover the monthly mortgage payments. You also need your lawyer to help you through the foreclosure payment plan.
There are specific terms spelt out by the department of justice under designated government parastatals to give credence to these claims. You should contact your lawyer for more information.
FORECLOSURE IN CALGARY
The city is guided by the “Law of Property Acts” which is the legal way of acquiring due payment by a mortgage company, a bank or a designated lender. In most cases, the simplest way to begin this is to engage the services of a specialized lawyer and submit the request after you missed your monthly payments. This lawyer will write a Demand Letter that is sent to the said borrower. In the letter, there will be details about the situation at hand and how it can be resolved peacefully before a set date.
More often than not, there isn’t any need for actions when the demands of the letter are met. However, there are cases where there are missed payments, and the lawyer now writes a Statement of Claim. That begins a foreclosure between your lender and you as a borrower.
This could take a while to be followed through if a borrower is savvy enough to take all the necessary steps. It could also be very dangerous if they fail to act as quickly as possible. The borrower will also seek to get a reimbursement if you’re not careful enough, limiting all options into foreclosure.
When your lender receives a Statement of Claim from you as a borrower, there is usually a process that follows this. It is what begins the long walk to losing or keeping one’s building. As a borrower, you have to follow through with all the due processes without missing anyone. Since every single detail is as important as the next one, you should always consider having a legal representative help you with all the necessary tools that would ensure you have a chance.
The process is quite tedious but could lead to being homeless in only a matter of days. Before this happens, there are steps to take or avoid for further help, and they are as follow:
After receiving a Statement of Claim, homeowners are expected to reply within several days. Failure to do this would only mean you can forfeit home in a matter of days. You are required to respond to the statement with another one of yours. That could be a Notice of Default statement. Essentially, it is disastrous to ignore the Statement of Claim.
It not only puts you at a disadvantage but also poses the potential risk of losing your home within a short time. It may also force you to take unnecessary credit to meet up. You must read, understand and reply to the Statement of Claim before the time allocated to you expires. That will save you a lot of stress in the long run. It will also give you an amount of confidence against your lender in the future, especially when you are out of options.
QUITTING THE CLAIM
If you are not able to meet up with the demands stipulated in the agreement, you are required to submit a relinquishment in some allocated days. You would be contacted with information and options on this procedure by the lender.
STATEMENT OF DEFENCE
You can equally ask for a defence against the foreclosure order made by your lender. That will have to follow a due process but will guarantee that your home is still within their grasp. The borrower has to list all the possible reasons why there should be patience until a resolution can be made. It should also highlight potential ways and terms to meet to have foreclosure delayed or overhauled.
DEMAND OF NOTICE
As a borrower, when it has to do with your home, you have to regularly update your lender on all the procedures taken to ensure that they were actively trying to settle the loan and the foreclosure at any given time. When this is done, it will prevent the other party from coming up with any surprises, especially when the matter is followed up in a court of law.
CONSENT ORDER FOR FORECLOSURE
In the instance where the borrower has equity but fails to meet up, they could request for a Certificate of Independent Legal Advice. That will allow them to sell the building privately rather than wait for the court to sell it at an auctioned price. This option can save borrowers the agony of another credit issue.
On the other hand, it is essential to note that the homeowner can also ask for a Redemption Period to settle your mortgage loan. It means that they have a right to be granted up to 6 months to find a lasting solution to the problem at hand. When this elapses, the court would then decide on how the building would be sold.
It is important to note that homeowners will pay and the fees may vary. This doesn’t take into account that you would also pay the loan on your mortgage. For all of these to be possible, you would need to win the Statement of Defense first.
Frequently Asked Questions (FAQ)
CAN YOU STOP A FORECLOSURE?
Yes, indeed, you can prevent a foreclosure. If you are a borrower, you need to understand the different times that are safe to borrow or not. Ultimately, effective communication between you and your lender, the more likely it will be to avoid foreclosures from happening.
Can You Stop A Foreclosure in Calgary, Alberta?
As a borrower, you should know when and how to prevent foreclosure in Calgary, Alberta.
The following article outlines how to prevent foreclosure or how it can be stopped.
The Statement of Claim written by a lawyer is basically laying out how a borrower explains his own part of the agreement and how lenders have breached this agreement. The law gives the borrower 20 days to reply to this by filing a Statement of Defense. However, your lender may just be able to cash in on your mortgage if you refuse to do some of the following:
HOW TO PREVENT FORECLOSURE IN CALGARY, ALBERTA
More often than not, foreclosure can be halted if you can negotiate peacefully with your lender. Of course, this comes as a surprise to many lenders, but it’s a welcome idea since they want to keep receiving their mortgage, and the borrower wants to keep his/her building. There are two ways to go about this;
- Repayment Plan: This allows the borrower to make extra payments and get extensions on loans each month. For instance, if your loan is $2000 per month, your lender could add a couple of extra to it for a more extended window before foreclosure.
- Modification: This is a tricky but effective way also to stop foreclosure on your mortgage home. It is a condition where a borrower exhibits a few changes in their lifestyle. It could be a reduction in earnings or an increased rate of mandatory expenses. When this happens, the mortgage payment will be lowered, and the borrower can get an extension.
Another effective way to halt foreclosure is to forebear your loan. Under this, the lender has no choice but to suspend all actions, which is between three to six months… You are expected to fix all your financial situations, including the interest rate on a mortgage and make your payments as earlier agreed. That is often made possible when a borrower is faced with mandatory expenses or loss of a job.
To further mitigate a foreclosure, you can also reinstate your loan. It means that you can bring it back to the current status by paying off the bank or lender. Of course, a borrower would pay for any default on their part for such a time. A similar way to ensure your safety is to make payments at once; this is called redeeming the loan. These options are only feasible if the borrower has enough to refinance the loan.
SELL YOUR HOME
Even after you have tried many steps and none of them seems to work, the best option would be to put your housing up for a short sale. The best possible scenario that may force you into this is when there isn’t enough money to continue, or your lender doesn’t agree to some of the modification plans. While selling may be considered an excessive program, it saves you more trouble. And if you think about it, it doesn’t hurt as much compared to the foreclosure. A short sale is your own way of keeping your options open and coming up with another plan.
Foreclosures may be seen as extraordinarily tiring and disgracing to many people, especially to persons with housing and other properties. It is often damaging to your credit score and affects you in the future. However, you should also note that several steps could be taken to avoid this occurrence if you have financial or psychological strength. Your house shouldn’t be lost under such conditions.
And while other countries like the United States may consider bankruptcy as a means to escape foreclosure, the option is not regarded as valid in Canada. What this means is that those who filed for bankruptcy may get into more trouble than usual. It will do nothing to stop the foreclosure process on your home.
The fact that personal bankruptcy does not affect secured debts is enough to make you rethink your decision to ask for such. It would be best if you did extensive research before you think you have all the corners covered.
In a bid to avoid foreclosure, it is advisable to be sure of your income level before taking a mortgage, as this inherently prevents you from embarking on the foreclosure process. There are hundreds of people facing foreclosure each year. After all, everyone needs a roof over their heads; you shouldn’t lose your home just yet or ever. Alternatively, you may consider housing counselling. There are lots of housing counsellors to help you with this.