Are you facing foreclosure? We can help!
What to do when facing foreclosure or how to stop pre foreclosure from a mortgage company? Several home buyers often feel that it is the end of the road when they are handed over a foreclosure notice. However, this is not true! Relax as you still have a few alternatives to explore to come out well of this situation. One such option is to sell your home.
If you are thinking on these lines, We Buy Homes in Calgary. We at Bridgedale Home Buyers are your housing counselor and understand that foreclosure is never an easy task for a homeowner. That is why we buy houses in Calgary in any condition for cash. Read below to know how you can stop foreclosure on your home.
Here are the ways to stop foreclosure:
Facing foreclosure, what are my options?
Foreclosure is stressful and scary. If your house is at the risk of foreclosure, then do not give up just yet.
There are a few options available to escape the jeopardy of foreclosure.
Ask for a new mortgage payment plan
Most of the home loan lenders would be ready to negotiate on the terms of the payments. If you are behind in meeting your mortgage payments, then negotiating on a new payment plan may work out for you. Most of the lenders would prefer receiving mortgage payments regularly and so would readily agree to negotiate on the terms of the mortgage payment provided you can pay off your loan on time.
Your lender would usually agree to repayment or a modification plan for your loan. The repayment plan is where the homeowner adds some money on top of your monthly payments. The Modification plan lowers the mortgage payments, which in turn increases the period of payment.
Make use of your assets
Get cash for your unused possessions such as traditional family passing precious stones and make your mortgage payment with it. This need not just be about jewelry, but many of your personal belongings can help make some extra cash. Selling off your old car (which could be under the vintage category now) and your guitar gathering dust sitting in the corner could be of help in some ways to build on the corpus money towards mortgage payments. Finding new revenue sources and prioritizing your mortgage payments on time would be your best option.
Opt for the forbearance plan
Tell your lender that you wish to opt for the forbearance plan.If you choose to forbear the mortgage payment, your lender may suspend the payment for a certain amount of time, and your lendercould agree for a three to six months moratorium. Once done, the homeowner will have to pay everything that he owes to the lender. The payment will include the full amount towards mortgage payment along with any deficiencies. This could be an option in the case of a job loss or mandatory unexpected spending. The forbearance period is given to the owner to get his finances in order and then resume the regular payments as per the original contract.
Reinstating the loan
Reinstating the loan refers to bringing the loan back to its current status and mitigating the process of foreclosure and can help stop foreclosure. This will require the homeowner to pay off the entire amount and any fees that your lender has to incur for the homeowner’s delinquency. The borrower could also redeem the loan by paying it in full, but that is an option only if he has ways to refinance the loan.
Selling Home Privately
If you are still not able to catch up on the mortgage payments and have got the notice of defaultand all the negotiations with your lender, have failed then sell the home as this could be your last resort to avoid a foreclosure. You will not be able to keep your home, but this step saves your credit score. Get in touch with a reliable agency that is ready to buy houses Calgary and pay you cash.
Is it legally permissible for a bank to initiate foreclosure if I miss only one mortgage payment?
Unfortunately, the answer is yes. As per the terms of most mortgage agreements, banks can see foreclosure even if you have missed only one payment. However, banks do not resort to foreclosure right away as it is an expensive process for both parties involved.
Therefore, they try to arrive at an amicable solution benefiting both parties, some sort of a repayment plan. For example, banks often work out a short-term alternate pay schedule to help you, that is, the homeowner, to repay your loan balance.
Options Present in Front of the Property Owners Facing Foreclosures
Wondering how can Calgary Home Buyers like you stop foreclosure on their home? If you can furnish the deed in lieu of foreclosure, then that would be the answer to how to stop house foreclosure. Apart from that, the property owners have 4 options they can choose.
- They can get in touch with the bank after receiving the demand letter or reminder and arrive at a solution.
- They can ignore all communications from the lender and cut all ties with your lender, and in turn, lose your home or the property concerned.
- They can put the property for short sale and use the proceeds to return the bank’s amount.
- They can head to court to:
- Agree to work with the bank in some way to retain the ownership of the property.
- Seek more time before the issue of the last foreclosure order. [or]
- Fight the foreclosure
What are the legal fees and courses followed by courts for a foreclosure?
How can I stop foreclosure? How do I save my home from foreclosure?
Before answering these questions, here is an in-depth view of the legal course followed by courts for a foreclosure, otherwise known as the judicial foreclosure.
The process begins in the same manner as other lawsuits. The bank (plaintiff) files and issues a Statement of Claim against the property owner (defendant). The Statement of Claim will contain all the facts on which the bank has formulated the claim against the defendant.
The property owner is usually given 20 days to respond. They can either issue a Statement of Defence or Demand for Notice. If the property owner chooses to ignore the letters, the bank can tell the court that the owner is not defending or fighting the claim.
After the initial stages, the bank will file an Affidavit of Value that mentions the mortgaged property’s current market price. The bank will also file an Affidavit of Default that mentions the owner’s total amount, the pending amount owed by the owner, and other such details. The bank will then seek remedies such as the sale of property of transfer of ownership from the court.
The court will then grant a Redemption order. As per this:
- The owner must repay the amount ordered by the court to the bank within the specified time.
- If the owner fails to repay the amount, the bank can sell your home or the property.
- The court can sell the property in any of the following methods:
- List the property with an agent.
- Advertise the mortgaged property for sale in the newspaper.
- Issue a posting of the property at the courthouse.
It is very rare for a court not to issue the order. This only happens when the court finds that the owner did not engage in an activity that could be outrightly seen as an act of default. If this happens to be the case, then your lender will have no valid grounds for starting the foreclosure.
Will foreclosure affect my credit score?
If you face foreclosure, you not only stand the chance of losing your home but also risk having your credit score severely damaged. The extent to which your score will come down depends on the below variables:
- Who is your lender?
- How much do you owe?
- Whether your mortgage is high ratio (lower than 20% of the down payment plan) or conventional (higher than 20% of the down payment)
- The present value of the property
Can I claim bankruptcy stop foreclosures in Calgary?
How to stop foreclosure in Calgary or how to fix foreclosure? Contrary to what some people may advise you, filing for bankruptcy will not stop foreclosures in Calgary. This is primarily because personal bankruptcy in Calgary does not include or involve secured debts like mortgages. This option only works for unsecured loans such as consumer debts and credit card debts. So, how then do you avoid home foreclosure? Should you consider refinancing?
Mortgages are generally considered as secured debt because an asset is typically used for securing your loan. Therefore, if you have given your home collateral to get your loan or clear your debt, filing for bankruptcy will not stop a foreclosure.
Thus, the lender can go ahead with foreclosure as a legal means to recoup the amount you owe if you commit an act of default unless otherwise there is some loan modification happening. Moreover, if your property sells for an amount lesser than what you owe to the lender, you may have to pay the difference.
How long does a foreclosure take?
There is no one-size-fits-all type of answer to this question as, like all legal proceedings, there are many factors to consider in your legal action. Sometimes the process is quick but for others, they pray “save me from foreclosure”, as the process seems to be never-ending.
Some of the most important factors that influence the duration of foreclosure are as follows:
- At which stage of the foreclosure process you are presently in?
- What kind of mortgage do you have?
- Is your mortgage insured?
- Who is your lender?
Generally speaking, the foreclosure process can take anywhere between 3 months to a year or even more.
How can we help with foreclosure?
Is this question of “how to get my house out of foreclosure?” on your mind? If yes, continue reading on how we can help your financial situation.
While selling your house through a real estate agent is a good option, if your home is in good condition and has the time to list the property, it is not the best route for stopping a home foreclosure or the best option for people facing foreclosure. There are other better ways to stop foreclosure.
The quickest way to get cash, settle your payments, and avoid foreclosure is by selling your home to us. At Bridgedale Home Buyers, we buy house Calgary as it is! So, you do not have to worry about spending money on repairs or making it beautiful.
We value our clients’ time and thus information about and handle all the required paperwork to avoid foreclosure and close the deal in just 5 days. Additionally, we do not charge any commissions, fees, or closing costs. To ensure the privacy of our clients, we maintain full discretion when we buy homes, Calgary.
In times like these, you need a helping hand to tide over the troubled times and know-how can you stop a foreclosure. So, to avoid foreclosure, call us now, and we will be at your service right away!