Are You Facing Mortgage Foreclosure?
- Let us help you stop foreclosure/power of sale
- Clear up mortgage arrears today
- Approved in as little as 24hrs
- Quick solutions to help you get caught up
- Avoid losing your home - Apply Now
Mortgage Foreclosure in Canada
In March 2022, the Canadian Bankers Association reported that 7,820 mortgages were in arrears. If your mortgage was counted in that statistic, you're in good company.
It goes without saying that if you've received a foreclosure notice, you need to act now. But when your back's against the wall financially, you've probably got more questions than answers.
What options do you have when you're facing mortgage foreclosure? How can you stop foreclosure? What should you expect from the process?
We'll tell you everything you need to know.
The Three Main Types of Mortgage Foreclosures
The term "mortgage foreclosure" describes a situation where your mortgage lender has decided to proceed with the legal repossession of your home. What a lot of people don't realize is that the "repossession" part of the "legal repossession" process will often take on three main forms:
- Power of sale
- Home foreclosure
- Tax sale
We'll go through each of these in turn.
The Three Main Types of Mortgage Foreclosures
The term "mortgage foreclosure" describes a situation where your mortgage lender has decided to proceed with the legal repossession of your home. What a lot of people don't realize is that the "repossession" part of the "legal repossession" process will often take on three main forms:
- Power of sale
- Home foreclosure
- Tax sale
We'll go through each of these in turn.
Power of Sale
First, the lender issues a Notice of Sale. At this point, homeowners may have a month or so to pay off their outstanding debts.
Read More…Mortgage Foreclosure
Tax Sale
Regardless of the exact foreclosure scenario that you're in, you can't sit around and do nothing.
Explore our home equity loans and financing solutions today!
Regardless of the exact foreclosure scenario that you're in, you can't sit around and do nothing.
Explore our home equity loans and financing solutions today!
How Do Mortgage Foreclosures Work?
If you've ever wondered why foreclosures are a last resort for many lenders, it's because the process of taking the full legal title of a home can be time-consuming and expensive.
The particulars may change depending on your province, but here's an overview of the mortgage foreclosure process:
First, the lender files a statement of claim. Then you respond with a statement of defense. Eventually, the mortgage is officially found to be in default.
Now, this is the part where the foreclosure process becomes a little bit less certain.
If the judge believes that you could catch up on your payments with time, they may give you a grace period, or Redemption Order. If the mortgage is considered to be in default, the judge may issue a Foreclosure Order.
As long as you're making consistent payments, you may be able to seek an extension from the court. Otherwise, the foreclosure will continue.
The good news for homeowners is that the process will typically take more than six months from start to finish. This means that if you act on your notice quickly, you may be able to keep your home.
Is your home being foreclosed on?
We can help you stop the foreclosing process in its tracks. Refinance your mortgage today!
Is your home being foreclosed on?
We can help you stop the foreclosing process in its tracks. Refinance your mortgage today!
How to Avoid a Foreclosure
Let's say that you've missed a few payments and the mortgage foreclosure process seems inevitable. You're not here looking for hypotheticals. You need to know how to stop a foreclosure before it has a chance to finalize.
Some of the options you have at your disposal include:
- Private mortgage financing
- Home equity loans
- Taking out a 1st, 2nd, or 3rd mortgage
But how do you decide what solution to pursue? There are two key questions that foreclosure mortgage lenders will be asking.
How Much Do You Owe?
Your answer to this question is really the equity left in your home. If your house is worth $400,000, you have no mortgage but you owe about $15,000 in property taxes, a second mortgage wouldn't make sense as a financing solution. A first mortgage would be more in line with what you need.
Companies like us offer everything from 48-hour home equity loans to accredited private mortgage solutions. But for us to give you the financing you need, we have to count the dollars and cents. The more precise you can be, the better.
What Procedure Are You up Against?
Power of sale proceedings can begin 15 days after your missed payment. But foreclosures often take a little longer to wind their way through the courts.
The final result is the same — the lender seizes the property and sells it. But these mechanisms can have a dramatic effect on both your timelines and your outcomes.
For instance, in a power of sale, the lender will still have to sell at fair market value to protect itself from lawsuits. With a tax sale, however, the municipality is only interested in collecting the money they're owed and recouping the cost of their legal fees.
As hard as it may be to believe, your lender doesn't really want to sell your home. In some cases, the mortgage may be more valuable to them than the sale. If you can find a solution that will stop foreclosures, you’ll keep your home and your bank will be happier too.
For this reason, the solutions we've just listed have one thing in common:
They're designed to get you current on either your mortgage or your outstanding tax debts.
Why Work With LendToday
When mortgage foreclosure proceedings have begun, you don't have any time to waste. That's where companies like ours can come in and help you save your home.
But why should you choose us over other lenders? Here are just three of the reasons why our clients enjoy working with us:
We Offer Fast Solutions
If you've got a court date coming up or you've been notified of a power of sale, time is of the essence. Even a few days of delay could be enough to leave you homeless.
As a company, we pride ourselves on offering time-sensitive solutions to Canadian homeowners who are caught in complex situations.
We do second mortgages. We do fast home equity loans and mortgage refinancing. If you need fast results and same-day expert advice, we can make it happen.
We Have Over 30 Years of Experience
Once your lender has decided to take possession of the property, they won't pull any punches. They'll have experienced attorneys arguing on their behalf in court and won't hesitate to get the courts and the sheriffs involved with your eviction.
This is not the time to work with amateurs. You need a team of experienced professionals.
Our team has spent the last three decades helping Canadians avoid foreclosure proceedings. Even if you're dealing with cash flow issues and limited funds, we can find a solution that'll work for your needs.
We'll Work With You Even If the Bank Won't
In the financial industry, people with strong credit get all the perks. Not only do they often have higher lending limits and lower interest rates — they never have to worry about getting their loan applications approved.
As a company, we understand that not everyone has a flawless credit history. Sometimes people are sick or unemployed for extended periods. Sometimes homeowners need to rebalance their budget to get back on track. A refinance to consolidate debts and improve cash flow can work wonders.
We get it.
When your mortgage is on the verge of going into default, however, the bank may be reluctant to extend any more credit. And they may still refuse even if a home equity loan would technically solve all your problems.
We offer mortgages to Canadian homeowners with bad credit. We offer mortgages to self-employed people. We even offer loans to people who can't verify their incomes.
If you've reached a dead end with the bank, we can give you a hand.
Don't Risk Losing Your Home to Mortgage Foreclosure
A mortgage foreclosure could cost you your home. If you’ve been served documents by your bank, credit union, or mortgage company — act quickly. We recommend that you explore refinancing options immediately. The longer you wait to do something to save your home, the fewer options you’re likely to have.
If you're dealing with a mortgage foreclosure, don't hesitate to contact us. We can even help if you have bad credit or low income. We understand that you need answers now and work quickly to help you resolve your problem and stay in your home.
Apply for a loan with us today!
Why Work With LendToday
When you've been served a statement of claim or you've been notified that your lender intends to pursue a power of sale, it's easy to feel overwhelmed. Here's a list of common questions about mortgage foreclosures:
Why Work With LendToday
When you've been served a statement of claim or you've been notified that your lender intends to pursue a power of sale, it's easy to feel overwhelmed. Here's a list of common questions about mortgage foreclosures:
In 2020, the Bank of Canada expressed concern about the potential for mortgage defaults to quadruple. But while missed payments are the most common form of mortgage default, financial missteps aren't the only way that you can default on your mortgage.
For instance, you can be considered in default by:
- Not paying your property taxes
- Not insuring your property if your lender required it
- Letting the property become damaged
According to Investment Executive, 53 percent of Canadians were living paycheck to paycheck in 2019. As such, missed payments are more common than you might think.
For this reason, the best way to reinstate your mortgage after a default is to focus on resolving the cause of your default and paying off any related debts as quickly as possible.
Sadly, yes.
In the past, credit bureaus didn't receive reports on mortgage payments. But now that the rules have changed, a foreclosure will fall under the general category of "negative credit information".
According to the Government of Canada, this information will appear on your credit score for six years.
No.
Bankruptcy can discharge unsecured debts. But mortgage loans are secured against the value of your home.
In 2020, there were 32,880 bankruptcies in Canada. And while the reasons for making a declaration may differ dramatically from person to person, there's one thing we can guarantee:
None of those individuals were able to stop the foreclosing process through their bankruptcy proceedings.
Not necessarily.
While a lender who is pursuing a power of sale may be able to sell for fair market value, there's a major downside that comes with being locked out of the selling process:
You don't get a say over what happens.
The lender could be selling in a slow buyer's market. After the sale is made, the seller may not be required to share the proceeds with you. And worst of all, if the house sells for less than the amount you owe, you could lose the house while still making payments on it.
For these reasons and more, we recommend that you don't let it get to this point. Contact us to discuss your financing options today!