Understanding how to stop foreclosure on your home with an experienced mortgage broker can make all the difference. You can save time, and money and avoid having to sell your home.
In Canada understanding your rights as the homeowner during the foreclosure process can seem fairly complex. You receive several notices that lead you to believe that you’re losing your home on a specific date without any recourse. Although there is a strong possibility the lender is not going to wait past the due date to receive payment in full; there still could be time left.
What is a home foreclosure?
A foreclosure is when a lender looks to take possession of a mortgaged property when the existing homeowner fails to maintain their mortgage payments.
Generally, a foreclosure process starts when you have missed 90 days’ worth of mortgage payments. Any lender will record a public notice that the borrower has faulted on their mortgage by mailing notices to the home.
In Ontario, a mortgage company will commonly use another method referred to as the power of sale but every now and then a foreclosure can occur. Read on to learn how you can stop the foreclosure process from happening.
The process of home foreclosure in Ontario
Notice of Sale
A lender will begin by filing and sending a notice of sale to the homeowner when they are 90 days (generally) past due on mortgage payments. The borrower then has 30 days to respond to the notice, should the property owner not respond the mortgage lender can now issue a statement of claim.
Statement of Claim
AÂ statement of claim highlights the amount of money required to bring the mortgage back into good standing or simply pay the claim. Should the statement of claim not be paid within 30 days the lender is now granted a Notice of Possession through the courts.
Eviction
If an additional 30 days passes the lender can ask the local sheriff to issue a Notice of Eviction. Eviction means that the sheriff can remove all occupants of the property within a week or two giving the lender full access to the property. At this time you would be asked to remove as many important belongings as you need.
The lender can choose at this point to accept payment or continue with the eviction. Consult your mortgage broker for help if this is happening. You have a few options available to you but will need to act fast.
Communicating with my current mortgage lender
During a foreclosure, it is important to note that you have the ability to speak to the lender ‘early’ on in the process. The very first thing you should be doing is trying to work out an arrangement for the balance owed.
Most lenders will accept payment in full or work with you to schedule a payment plan. Your best option is to make payment in full if you can so that no further interest accrues.
How can my broker help stop foreclosure on my home?
An experienced mortgage broker can work with you to find suitable methods to save your property. Since a borrower in foreclosure is now considered high-risk most traditional lenders such as banks and credit unions will not be in a position to help. A mortgage specialist can work with you to find a suitable private lender to get the money you need using the equity in your home.
You can quickly determine how much equity you have by comparing what you owe and what your home is worth. Use a home equity calculator to determine just how much equity you can access today.
Financing solutions to stop home foreclosure
One of the most common ways a homeowner can act quickly to stop foreclosure is by using the equity they have. Getting an emergency loan no matter your credit score can save you thousands.
Act quickly in order to save on additional costs; the more time that passes the larger the costs to save your home will be.
Facing foreclosure? At LendToday.ca our team of experienced agents can work with you to arrange financing quickly to save your home. Secure a home equity loan with a comfortable repayment plan or no payments for 12 months. If you have bad credit, filed for bankruptcy, or feel high risk we can help.
If you’re looking to avoid foreclosure give us a call at 1-855-242-7732 or apply online now.
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