No one enters into a mortgage agreement planning for it to fail. However, thanks to job loss, illness and other financial emergencies, some people who are in mortgages find themselves unable to make payments. If you are a homeowner in Grande Prairie and find yourself in such a situation, the best thing you can do, as soon as you find out that you will be having these difficulties, is to get in touch with your lender. Your bank would much rather work with you than send you to foreclosure. If they work with you, they end up getting their payments without the hassle and expense of the foreclosure process. Having to go to court, put an auction together, evict you and then prepare for the new homeowner involves a considerable expense. If foreclosure has not yet begun for you, get in touch with your lender as soon as possible to discuss a loan modification or other way to bring yourself current without any more damage to your credit report.
Foreclosure Options in Grande Prairie
If the foreclosure process has begun for your home in Grande Prairie, but you have not yet made it to the foreclosure auction date, then you are in what is known as the redemption period. This means that you can pull your home out of foreclosure by paying the principal owed, plus remaining interest and fees. Depending on the bank, you might even be able to redeem it just by bringing your loan current, but Canadian law gives you the right to redeem the property by the sale date.
This is where Amansad Financial has helped many customers in and around Grande Prairie and stands ready to help you as well. We have connected many of our clients whose mortgages are in distress with private lenders who help them out in a couple of ways. The most common is to have the private lender buy out the mortgage. So if you’re in foreclosure, but the auction date hasn’t come yet, the basic process involves Amansad Financial connecting you with a lender who has the capital at the level you need. If your remaining principal, interest and fees total $305,000, for example, the lender would simply pay that amount to the bank. Your foreclosure would still appear on your credit report, but it would appear as redeemed, which means that the impact on your credit score would be significantly less.
You’re trading your mortgage out, though, rather than getting rid of it; you simply have a new lender to pay. Most private lenders want their money back within three years, if not sooner, so this isn’t as long-term a solution as bank financing. However, this does give you time to get back on your feet financially and find another lender in Grande Prairie or the surrounding area to help you buy out the loan at that time. In the meantime, you’re still building up equity — and you’re not facing the awful prospect of a foreclosure auction.
If this sounds like a solution that would help you, give us a call. If foreclosure has not yet started for you, but you are in trouble with payments, call your bank as soon as possible — proactive borrowers get a lot more flexibility from their banks. If the process has begun, call one of the foreclosure specialists at Amansad Financial today, and we will put together an individualized plan.