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Facing Foreclosure in BC? Find out what your options are.

Buying a house represents a major investment decision. Whether you have some investment capital and want to turn it into a real estate profit or are interested in buying your family’s new home, you don’t have any plans to go into foreclosure when you go to closing on your new house. However, sometimes thing happen, such as unemployment, serious illness or other setbacks, and people end up falling behind on their mortgage payments, and foreclosure simply happens. If you face the prospect of foreclosures in BC, consider talking to us first. I believe that we should help every client avoid foreclosures in BC if absolutely possible, because your home is your sense of identity, in a number of ways. Your lender is not going to share as many options with you as there are out there, either because of a lack of awareness or a lack of sympathy. Foreclosure can wreck your credit rating for years to come, meaning that buying a house might never happen again for you.

There are a lot of options out there when you fall behind on your mortgage payments, even if you have gotten to the place where they are no longer affordable. Amansad Financial Services has relationships with many different private funding sources and is aware of the nuances of their guidelines. If you are willing to come in and complete a short loan application and go through a brief overview of your financial situation, Amansad Financial will gain the information necessary for preparing a plan to help you avoid BC foreclosures and return to solvency.

How can Amansad Financial help you when so many other lenders cannot?

How does the process work? There are many sources of private funding out there, and there are some who might be willing to buy your loan from your original lender, refinancing your original commitment and giving you a new start on your mortgage. You might face a longer term than you thought, as you might have to start that 30-year clock again, and there might be some up-front costs associated with this new loan. However, if the foreclosure process has already begun for you, you need help immediately, and losing your home is worse than having to pay some fees now that you did not originally anticipate with your first loan. Amansad Financial has connections to assemble some creative responses to your situation that other funding sources lack the access to. When this process comes through for our clients, you get a new loan that stops the countdown to foreclosure, or it provides you with a boost of cash flow to keep you running while you find a purchaser for your house. Either path gives you a way out from having that foreclosure information on your credit report.

The Foreclosure Process in BC

The BC Supreme Court controls each step of the foreclosure process in the province. If you don’t pay your mortgage, the lender will likely call you or send you a letter. This is the bank’s attempt to allow you to make a good-faith effort to catch up on the loan. After a couple of months have gone by, though, you’ll get a letter from the bank detailing the arrearage that you have run up so far.
 
The letter gives you a date by which to pay the arrearage in full before foreclosure proceedings will begin. In many cases, if you call the bank and explain the situation, the representative may allow you to break that arrearage down into smaller payments, but communication on your part is vital at this point if you don’t think you’ll have the full amount in arrears by that deadline.
 
If you ignore the letter — or if you just can’t come up with the money and the bank won’t work with you on spreading that amount out — the lender will hire a lawyer. You’ll get a letter from that lawyer asking you to either pay that arrears amount or the full amount due on the mortgage, depending on what the bank’s preference is. You’ll see a deadline in that letter, after which the court proceeding will begin.
 
If you fail to meet this deadline, the lawyer will file a foreclosure petition. You will receive a copy through a process server, as will all the other interested parties (other mortgage signers, any tenants, as well as any other lien holders). You can file a response at this time. The hearings begin about a month later. At this point, the judge provides the lender with an order nisi, which gives you some time to redeem the loan by paying the total amount owed as well as costs, interest and taxes. This period generally gives you six months to take care of this, but the lender may request a shorter period. If you don’t redeem it during that time frame, the lender can either get an Absolute Order of Foreclosure or ask to have the court list the property for sale. In the case of an Absolute Order, the lender becomes the new owner, and everyone else is kicked off the title. If the court lists the property for sale, once the property is sold, if there are still arrears, the lender can go after the borrower for a deficiency judgment.
 

Process Overview:

  1. Claim statement – If you fall behind your mortgage by more than 90 days, the lender has the legal right to bring your financial status into question. After you get this paperwork served to you, you have a period of 15 days to file a statement of defence in rebuttal to the claim statement. If you do not file the rebuttal in time, you are likely to have a default judgment entered against you.
  2. Sale request – The bank next goes in front of a judge requesting the right to sell your home. If the judge grants the request, he then sets a certain period of time to permit redemption of the home. This is the amount of time in which you must pull together the entire remaining value of the loan, in addition to any other court fees and arrears. This period generally lasts between 90 and 180 days.
  3. Sale of the home – If your home is the subject of a foreclosure sale order, then the court establishes whether the sale goes through MLS or through the Court Tender process. When the order paperwork comes in, you will see the timeline of the important events in your redemption period. You will also see the order for the home appraisal to get an accurate valuation for the lender. If you can’t come up with the money to redeem the house by the time the period ends, you will lose the house to a foreclosure sale.
Foreclosure Timeline Process - BC
StepsActionTimingNotes
1Demand Letter or Phone CallLender is making sure that it is not an error, and providing for property owner to fix the problem.
2Claim Statement15-day notice periodIf you fall behind on your mortgage by more than 90 days, this will be served to you. You do not agree with the claim, a file of defense needs to submitted.
3Petition for ForeclosureIssued shortly after Claim Statement has expired.21-days to respond to lender at the court address shown on petition. Property owner must read and follow the instructions on how to file the response. By responding, property owner must receive all notifications. A copy is sent to all parties of interest. (mortgage holders, tenants, and other lien holders.
4Notice of Motion for Foreclosure relief
i.Court Hearing /
Notice of Motion for Order Nisi
About a month after Petition of Foreclosure is issued.The lender goes in front of a judge requesting the right to sell the property. If the judge grants this request, he will set a time for you to pay the entire value of the loan, plus any additional court fees. Time granted is commonly 6 months, but can be as little as 1 day.
5If, Order Nisi (Redemption Expires, one of the following will occur.
i.Judicial SaleSold through a realtor. Lender will receive an order approving the sale. If the property is sold, and the sale does not generate enough money to pay the lender & all costs, a ‘Deficiency Judgement’ can be placed on the property owners. In short, the property owner is responsible for any shortfalls.
ii.Absolute Order of ForeclosureNo equity. Property owner has no assets. No offers under the judicial sale. The title is granted to the lender. No further action can be taken against the borrower.
REVERSE FORECLOSURE NOW!
If you have equity in your home, you may have options!

Plan Of Action For People Facing Foreclosures In BC:

When foreclosure is looming, if you can be proactive in your communication, you are much more likely to keep your house. If there are is only one or two missing payments, start talking to your bank now about the possibility of extending the loan. When you take charge of the process and start communicating early, you are much more likely to succeed, because foreclosure is a hassle for the bank, and they will work with people who communicate. If you are able to get an extension but find that the payments are still higher than you can afford, Amansad Financial can help you locate a refinancing provider who will help you while you get that extension from the bank, giving you a fresh start without the high blood pressure that foreclosure can cause. If the legal process has already started, though, the time line may well be out of your hands. Either way, call Amansad Financial today to get a handle on your particular situation if you are Facing Foreclosure in BC.

No one who purchases a home does so with the intention of going into foreclosure proceedings. However, sometimes crises hit home, and people end up in a financial bind. If you are facing foreclosure in Vancouver, it is my philosophy that losing your home is the very last thing that should happen. If you go through foreclosure, your credit can be ruined for years to come, severely limiting your ability to buy another home down the road.

There are a lot of options available to you, even when you can no longer afford your mortgage. Amansad Financial Services has relationships with many private funding sources and is conversant with their regulations. If you just take a few minutes to submit a mortgage application and complete a financial assessment, Amansad can help you figure out the optimal way to proceed.

How can Amansad Financial Services help you with a pending foreclosure?

There are other lenders who may be willing to purchase your loan from your bank, in effect giving you a refinancing option that lets you start things over. The term of your loan may lengthen, and there may be initial setup costs, but if you are into the foreclosure process, you are looking at having to redeem the entire price of the house. Refinancing when you are under the gun for foreclosure means that you need help in a variety of forms. Amansad Financial has the connections in the network to find creative solutions that many other lenders lack the access to leverage on your behalf. This process can either end with you getting the loan approval that gets you off the foreclosure hook or gives you some more cash flow while you find a buyer for your home. Either way, you can end up avoiding having the stigma of foreclosure on your credit report.

Take Foreclosure Action Right Now! 

If you procrastinate, you are not only letting time tick away, but your costs in interest and legal fees only go up. Each day that goes by without action cuts down your likelihood of beating the foreclosure conundrum. Extra costs that accrue can end up being the stumbling block between you and financial freedom.

Get in touch with us to go over your choices. We will connect you with the right lenders to help you. If you have already explored options with another company, still contact Amansad Financial to explore possible additional alternatives. If there is a way to prevent foreclosure, we will find it.

Conclusion:

When you are facing foreclosure, being proactive is the key to staying ahead of the game. Obviously, if you are only a month or two behind, the time to start talking to your own bank about an extension is now. Proactive steps in communication can keep you out of foreclosure in the first place. However, if you are already headed to court or are in the redemption period now, things have already gotten out of your hands. Give Amansad a call to see what we can do for your situation.

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Daniel K. Akowuah | Mortgage Professional / DLG Underwriter
Toll Free: 1(877)756-1119 | PH:1(780)756-1119 | FX:1(877)238-7794
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