This article goes through the timeline of How Long Does Foreclosure Take, to give you an idea of what’s coming. If you have been laid off and are having a difficult time meeting your financial obligations on a monthly basis, one of the major problems you may be facing is that mortgage payment. Your house is likely the largest investment you will ever make, which means that your mortgage payment is the biggest bite that comes out of your budget each month.
So if you’ve missed one payment and are about to miss two, you may be thinking about the foreclosure process and how it could affect you.
Before we start, though, it is worth mentioning that communication on your part can keep foreclosure from happening altogether. If you talk to your bank and let them know about your layoff and that you would like to get caught up, even if you’ve missed a payment, they are likely to work with you. Foreclosure is expensive and time-consuming for them, and they would much rather miss a couple of payments and even go through a modification than pay attorneys, take over the house and have to find someone to take the property off your hands.
The first letter you get from the bank will likely come after your first missed payment, or maybe your second. This is the bank’s good-faith effort to allow you to take care of the situation without any unpleasantness. A couple months later, though, you’ll get a letter from the bank asking for the balance in full. Even at this point, with many lenders you can still get a modification worked out, but it’s best to talk to the bank before you get this letter.
This second letter will have a deadline on it, and if you haven’t taken care of the situation, the bank will talk to a lawyer to begin the foreclosure process. At this point, it’s more difficult to go back to a monthly payment plan, as the bank has put legal fees into the situation. Now, you’ll want to talk to a private lender or go through some other channel to pay the loan for you, and then you would start paying the new creditor, if you can’t sell the house.
How long does it take to foreclose on a house in Canada
The lawyer will send you a third letter, again demanding payment in full before a particular date. After that, the lawyer files a foreclosure petition with the court. You’ll get a copy, as will everyone else (tenants, other mortgage holders, lienholders and so on). About a month after that document comes, you’ll go to court, and the judge gives the lender an “order nisi” that starts the redemption period. This gives you about six months to pay all that you owe, in addition to interest, taxes and costs. The lender may ask for a shorter period, but six months is generally the standard. After this time elapses, the lender can have the court list the property for sale or get a foreclosure order.
An Alternative to Foreclosure
As you can see, this process can drag on for more than a year. However, your best interests are served by talking to the bank as soon as you realize you have a funding problem and putting together a workable solution. Amansad Financial has connections with lenders who can find alternatives to foreclosure. Instead of wondering How Long Does Foreclosure Take, Get in touch with us today or see if you qualify now through our fast Pre-Qualification form.