Facing Foreclosure? Can A Foreclosure Mortgage Help You?

FORECLOSURE MORTGAGES 

Written by Kristen White

A mortgage is a contract to repay a loan, secured with a charge on land that is registered against your property at the Land Title Office. If you fall behind with your mortgage payments, the lender may start to Foreclose. If you can’t pay the mortgage loan in full, either by selling your house or pay the mortgage in some other way, the lender can sell your property to pay off the loan.

If your Mortgage is currently in Foreclosure, you can apply to obtain a Foreclosure Mortgage. This mortgage will pay out your current Bank/Lender and stop the current Foreclosure.

Please keep in mind when obtaining a Foreclosure Mortgage, during the application process, your new lender will look at your current employment, your credit and other current loans including any other mortgages registered against the property being Foreclosed on.  If your Bank/Lender will not allow you to reinstate your mortgage, and you still have equity in your property that you need to protect, I have Lender’s who may be able to help.

We specialize in Pre – Foreclosure. In most cases, we can reinstate your mortgage, stop the Foreclosure and make monthly payments towards your mortgage.

If you have questions, contact us today: 604-812-3718. We are here to help and we do not charge any fees or real estate commissions, saving you thousands of dollars.

Mortgage Types and Terms

This post covers standard mortgage types and associated terms. Each bank, credit union and private lender may also offer their own specialized mortgages and terms.

Brought to you by: Kristen White

Term

The period of time your mortgage agreement will be in effect, including your interest rate and terms and conditions. At the end of the term, you either pay off the mortgage in full, renew it or possibly renegotiate your mortgage agreement (for example, decrease your amortization period). Terms are generally for six months to 10 years.

Prepayment Charge / Penalty

Your lender may require you to pay a charge if you want to make a prepayment greater than the amount allowed in your mortgage agreement, or pay off or break a closed mortgage before the end of the term. Sometimes also called a penalty. Prepayment Privilege Terms of your mortgage contract that allow you to pay an amount toward a closed mortgage on top of your regular payments, without triggering a prepayment charge. For example, you may be allowed to make lump-sum payments up to a certain amount or increase the amount of your regular mortgage payments.

Prepayment Penalty

A fee charged to you by the lender for making a prepayment greater than the amount allowed in your mortgage agreement, or for paying off a closed mortgage before the end of the term.

Open Mortgage

A mortgage that can be prepaid at any time during the term, without paying a prepayment charge. The interest rate on an open mortgage may be higher than on a closed mortgage with a similar term.

Closed Mortgage

A mortgage agreement that cannot be changed before the end of the term. Your lender may let you make certain prepayments without paying a charge, but you will usually have to pay a charge to break or change your mortgage agreement. Read more

Facing Pre-Foreclosure or Foreclosure? We Buy Houses Fast

If You Are Facing Pre-Foreclosure or Foreclosure, You May Be Able To Stop It

Foreclosure is an extremely stressful situation and the process is unknown to many people. It is important for you to know the process you are facing. Information in this article is a general overview of the Foreclosure process and mainly applies if your first mortgage is in Foreclosure and your first mortgage is with a larger banking institution or credit union. (If you have a second, third or fourth mortgage that is in Foreclosure with a smaller  credit union or private lender, some information in this article applies but the Foreclosure process can be different).

Our Company, GVCPS is a Real Estate Investment Company that specializes in helping people who are experiencing difficulty making their mortgage payments each month and people who are in Pre-Foreclosure. If you are in Pre-Foreclosure, we can reinstate your mortgage to bring your mortgage back into good standing with your lender and stop Foreclosure. We can provided you with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments along with protecting any equity you may have in the property and protecting your credit. Contact us for Free consultation. Office: 604-812-3718.

1. If you have fallen behind on mortgage payments, your Bank/Lender will send you a letter and also call you to make you aware of the missed payment(s). If you don’t respond or attempt to bring your payment(s) up to date, the Foreclosure may start immediately without any further notice to you. There is no general rule on the number of missed payments it takes for your Bank/Lender to start the Foreclosure and is solely at the discrepancy of the Bank/Lender.

2. The Foreclosure Process in British Columbia is by Judicial Sale and is under the supervision, authority and control of the BC Supreme Court. The Court decides when to start selling, decides the sales price, the terms of sale and any commission paid to a Realtor. The Bank/Lender who holds your mortgage starts the legal process by obtaining the Court’s permission to sell the property.

3. The Bank/Lender’s Foreclosure Lawyer will send you a “Demand Letter”. This letter informs you of the total amount remaining on the mortgage debt that you owe and includes missed mortgage payments. You will also be informed of legal costs plus interest on the outstanding debt amounts that you will be responsible for.

4. The Demand Letter will indicate a deadline date (approximately two weeks after you initially receive the letter), that the Bank/Lender will allow you to catch up on all missed mortgage payments that are behind to bring your mortgage back into good standing. You will also be responsible for legal costs to date (in some cases under $1,000.00 at this stage), plus you will have to provide proof that your property taxes and property utilities are up to date and that the property is currently insured for the full replacement value.

5. If the amount of money you owe in missed payments, property taxes and utilities is provided in full to the Foreclosing Lawyer by the deadline date along with the proof of required property insurance, the Foreclosure will stop. It is in your best interest to stop the Foreclosure at this point in the processes and bring your mortgage back into good standing with your Bank/Lender. You will protect your equity, credit and avoid further Legal costs from the Foreclosing Lawyer. Any time after the Demand Letter stage, there still may be solutions but you are taking a greater risk of losing everything to the control of the Bank/Lender and Court if you do not have the funds to bring your mortgage back into good standing.

6. If the Lawyer does not receive the money you owe by the deadline date, the Lawyer can commence immediate legal proceedings without further notice to you. A Foreclosure petition will then be filled in the Supreme Court.  In this process, the Bank/Lender is named the petitioner and you (the borrower of the mortgage), are named the respondent(s).

7. An Order of Nisi is then established. The Court will determine the amount you owe to the Bank/Lender and will decide how much time to give you to pay back the outstanding balance.  This period of time is known as the Redemption Period. You can sell the property at this time as long as sell it for the full outstanding balance owed to Bank/Lender or try to obtain a Foreclosure Mortgage from another Lender.

8. If you can’t sell the property or obtain another mortgage by the time the Redemption Period has expired, the Bank/Lender will seek an order approving sale of the property called a Court Ordered Sale (or Judicial Sale). The property is now in control of the Bank/Lender who will sell the property with a Realtor of their choice. If the Bank/Lender does not obtain the amount of money from the sale that you owe for the mortgage debt, mortgage payment arrears, the Realtor’s commission for selling the property, accumulated Lawyer fees, plus applicable interest, the Bank/Lender and your mortgage insurer (CMHC or Genworth), can legally sue you for any amount outstanding that you owe.

9. The final stage if necessary is an Order Absolute. This is what may happen if your second, third or fourth mortgage is in Foreclosure with a smaller credit union or private lender. The Lender seeks an order absolute, which means the Lender becomes the new registered owner and you are removed from the title.

It is in your best interest to stop the Foreclosure when you initially receive the Demand Letter from the Foreclosure Lawyer. Anytime after this stage in the process, there still may be solutions but you are taking a greater risk of losing everything to the control of the Bank/Lender and Court if you do not have the funds to bring the mortgage back into good standing.

We help people who are experiencing difficulty making their mortgage payments each month and people who are in Pre-Foreclosure. If you are in Pre-Foreclosure, we can reinstate your mortgage to bring your mortgage back into good standing with your lender and stop Foreclosure. We can provided you with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments along with protecting any equity you may have in the property and protecting your credit. 

*Information in this article is for information purposes only and in not intended as legal advice.