If you want to keep your Calgary home safe from foreclosure, you need to know about the legal process and how to prevent it. This will help you take complete control of the situation and make informed decisions that will further reflect on your financial portfolio. You can also understand the credit implications of foreclosure and consult with experts accordingly to navigate through this process. The legal process, prevention, and its implications in detail will help narrow down your queries.
What is Foreclosure?
Foreclosure is a judicial procedure where the lender can file a claim to take ownership of a property if the borrower fails to meet the mortgage payments. To settle the unpaid debts, the lender can sell the house under the supervision of the court. However, in this procedure, a redemption period is given to the homeowner, where they need to act right on how to stop foreclosure proceedings and take steps to save their home by addressing the mortgage obligation.
Legal Process of Foreclosure
Foreclosure is a legal process that requires the involvement of the court and follows step-by-step procedures to reach a conclusion.
- Notice of Default
The foreclosure procedure begins only when the homeowner misses multiple payments. The lender issues a notice of default, outlines the overdue amount, and asks the homeowner to revert immediately and meet the payments.
- Demand Letter
If the homeowner fails to communicate and the payments remain unpaid, the lender sends a formal demand letter, which gives the borrower 10 to 30 days to clear the arrears.
- Statement of Claim
The lender files a Statement of Claim at the Alberta Court of Queen’s Bench and sends a letter to the borrower or defendant instructing them to respond within 20 days.
- Order for Sale or Redemption
If the borrower fails to respond, the lender will file a claim with the court requesting permission to sell the property. The court might grant a redemption period based on the borrower’s financial instability, which gives them time to repay the debt and put a halt to the foreclosure to save the house.
- Judicial Sale
If the borrower fails to repay the debt during the redemption period, the court orders the lender to sell the property.
- Final Order and Eviction
Finally, the court issues a final order after the sale, instructing the homeowner to vacate the property.
How to Stop Foreclosure?
Follow the steps mentioned below to stop foreclosure:
- Negotiate with Your Lender
To stop foreclosure, you must communicate with your lender and discuss your financial condition. They will be able to provide alternative solutions to help you make debt payments. You can also negotiate with them for a loan modification, extending the term period, or requesting temporary forbearance.
- Access Refinancing Options
You can also seek a refinancing option, which will reduce the monthly payments and consolidate the debt into one single payment, making it easier to manage your finances. Alternatively, you can also look for mortgage brokers who are providing better terms, which will help you deal with the mortgage dues.
Conclusion
To settle the depth, you can also work with real estate investors who can help to look for direct home buyers Calgary and sell your property faster. Alternatively, local organizations can offer assistance in restructuring your payments to help you gain temporary financial stability.
