Posted: 1 Oct

Your Foreclosure Fears Explained & How a Mortgage Loan Can Help

Your Foreclosure Fears Explained & How a Mortgage Loan Can Help

Foreclosure happens when you fail to pay your mortgage for a period of time, and your lender repossesses your home and tries to sell it. The lender does this to take back the security on a mortgage, which is your home in this case. Being in foreclosure is daunting, especially if you don’t know what to do. Let’s explore foreclosures and how a mortgage loan for foreclosure can help. Contact us to learn more.

The Foreclosure Process 

First, it’s crucial to always be in constant communication with your lender, especially if you’re behind on your mortgage payments. It may be possible for you to work out a suitable payment plan and stop your lender from moving into foreclosure. Also, you can find a private lender for a mortgage loan for foreclosure in good time.  

It’s also important to understand that your lender prefers to avoid lengthy and costly foreclosure procedures. Your lender only seeks foreclosure to avoid losing more money. When you miss the first monthly payment, your lender has the right to go right into foreclosure. However, the process is long, and you won’t lose your home immediately. The foreclosure process assumes a court case.  

  • When you miss your first payment, the lender starts issuing demand letters. However, after 90 days of delayed payments, the lender issues you a notice of default and begins the foreclosure process. Securing a mortgage loan for foreclosure can help you at this point. 
  • The plaintiff (the lender) files a Statement of Claim with the court and also serves you (the defendant). Once you are served, you have 20 days to respond to the court. You can file your response as a Statement of Defence or a Demand for Notice. 
  • If you fail to respond, the lender informs the court that you are in default (of the court’s actions). Once you’re in default, you lose your chance to defend yourself and the right to be informed about court proceedings about the foreclosure.  
  • Eventually, your lender files for a remedy by the court, which allows them to recover the money loaned to you through the mortgage. The court issues a Redemption Order. At this point, you can stop the foreclosure process by securing a mortgage loan for foreclosure and paying your mortgage debts fully or updating your payments.  
  • However, if the court believes that you cannot find the money to pay the mortgage, they may skip the Redemption Order and issue an Order for Foreclosure or an Order for Sale.  
  • An Order for Foreclosure transfers your home to the lender while an Order for Sale directs the sale process under the court. Once your home has a new owner, you have a 30-day period to vacate.  

What Are the Consequences of a Foreclosure? 

Fighting a foreclosure, whether through seeking a mortgage loan for foreclosure or by other means, is vital. The effect of going through a foreclosure is permanent on your credit report, unlike other forms of delinquency, such as bankruptcy. 

This means that should you want to apply for loans and mortgages in the future, you’ll have a difficult time. Qualifying for a mortgage in Edmonton without at least a 20% down payment becomes highly unlikely.  

Also, you lose your home and investment in the process and accumulate debt and interests that may take a lifetime to pay off. Taking a mortgage loan for foreclosure can help you bounce back and save your home.  

If you’re already in debt, a lender may not be keen on extending or adjusting your payment plans. A short-term mortgage loan for foreclosure can help you secure your home and avoid the long-time effects of foreclosures.  

Get a Mortgage Loan for Foreclosure Today! 

If you’re worried about losing your home to foreclosure, you need to work with a private broker to pay off your mortgage. With Dominion Lending Centres, you can find the right mortgage loan for foreclosure and retain your home in Edmonton. Contact us today for more information! 

 


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