Foreclosure and bankruptcy are both complex processes and each person’s situation will be different. You may have never experienced either situation before and it is not unexpected that you may be feeling overwhelmed and not sure what to do.
If you are experiencing financial stress, early intervention is the key to turning around your financial situation to avoid bankruptcy and foreclosure.
If you are thinking about filing for bankruptcy and that it might be a good solution for your debt and mortgage problems, you should know more about your alternatives to bankruptcy and foreclosure before taking such a drastic step.
Take the first step and contact us for free confidential consultation regarding an alternative to bankruptcy and foreclosure to avoid the consequences of taking no action.
We are a well-established Real Estate Investment Company that can provide you with an alternative to bankruptcy and foreclosure by providing you with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments along with protecting any equity you may have in your house, townhome or condo and protecting your credit.
We take over mortgage payments and the house, townhome or condo associated with the mortgage in Vancouver, BC, the Lower Mainland, BC and the Fraser Valley, BC.
Our focus is to help you eliminate insurmountable debt and stress. We can help get your mortgage payments back on track or if your mortgage lender has issued you a demand letter for your missed mortgage payments, we can help reinstate your mortgage and bring the mortgage back into good standing if you act within the time limits that your lender has provided in their demand letter.
Contact us to discuss your situation in more detail and what solutions we can provide to your real estate situation.
Foreclosure Options: Alternative to Bankruptcy
A missed payment on your mortgage is a default in your mortgage contract with your lender which allows your lender to commence foreclosure, a legal process to seize your house, townhome or condo to sell for repayment of your mortgage lender’s debt. You have options when facing foreclosure and, if you are able to use any of these options listed below to solve your problem, it is important to act quickly to avoid or stop the foreclosure process.
Alternative to Bankruptcy: Stop Foreclosure
- Payment of arrears. In the case of a single missed payment, you will generally receive a reminder from your lender. If you are able to pay, contact them to make payment arrangements. They may also be able to assist you with temporary financial situations to avoid foreclosure even after formal demand for repayment has been made.
- Redeem your mortgage. You may be able to obtain a mortgage with another mortgage lender. There will generally be costs other than the current mortgage balance that will also have to be paid. These can include strata fees, property taxes, interest or penalties under the existing mortgage, payout of judgements/liens registered on title by other creditors, etc. A mortgage broker may be able to provide some assistance to you in locating another lender during this critical time.
- Sell your house, townhome or condo and to pay off your mortgage debt. If you have sufficient equity in your house, townhome or condo,, you may be able to sell your property and pay off the mortgage. Equity is the value after the mortgage and interest, any penalty on the mortgage for selling before the end of term, other debts or judgments registered against the property and any selling costs such as realtor’s commissions and legal costs.
Alternative to Bankruptcy: Impacts of bankruptcy on your house, townhome or condo and your mortgage debt
You should be aware of the impacts of bankruptcy on your house, townhome or condo and your mortgage debt when considering bankruptcy. If you are considering bankruptcy, the bankruptcy may occur at any stage during the foreclosure process and may impact your decision on what action to take. The information provided below is general and should not be construed as legal advice.
- Secured creditors in bankruptcy. A mortgage lender is a secured creditor and retains their rights in bankruptcy. This means they can continue with their existing payment arrangements on a mortgage that is current and not in foreclosure, continue a foreclosure action started prior to bankruptcy, or take foreclosure action for a default occurring during the bankruptcy. The mortgage debt must be listed in your documents if it exists at the date of the bankruptcy and the lender will receive notice of the bankruptcy.
- Equity in personal residence. The equity in your personal residence in a bankruptcy is the portion remaining after the mortgage, interest and selling costs. Unlike the calculation of equity when selling your property to pay off your mortgage, the judgment creditors are not considered as they are no longer able to take action once you are discharged from bankruptcy. If you reside in your home at the date of bankruptcy, you are entitled to claim $12,000 equity in a home in the Lower Mainland of BC and $9,000 in other areas of BC. This exemption may be different for other provinces and territories.If there is equity in your home over the basic exemptions listed above, it vests in the trustee for the benefit of your other creditors. You are not entitled to retain the non-exempt portion of your equity and will have to discuss with your trustee options to have this realized if you wish to retain your home.
- Foreclosure prior to the date of bankruptcy – No equity. If the foreclosure process has started, and there is no equity in your property, you may not want to take any action as any debt remaining after the foreclosure process will be included in your bankruptcy. This debt is included whether or not the foreclosure has completed at the date of bankruptcy if it was commenced prior. However, if there is another individual on the mortgage that has not filed bankruptcy, they will be responsible for the full amount of any shortfall remaining on completion of the foreclosure process.
- Foreclosure prior to the date of bankruptcy – Equity. If there is equity in your property and you believe that you may be able to take advantage of any of the options to stop the foreclosure process, you should obtain legal advice on your options and possibly defer filing a bankruptcy. If there is sufficient equity available in your home, you may be able to obtain additional funds by refinancing your mortgage or obtaining a second mortgage to pay out your unsecured creditors or file a proposal with a licensed insolvency trustee to settle the debt of your other creditors. However, although you may qualify for a higher mortgage, you should review your budget to ensure that you can maintain the new mortgage payments in the long term based on your known financial circumstances.
- Credit rating and obtaining a rental home during bankruptcy. If you are looking for a rental to move into during the foreclosure process, you may find that some owners of rental properties or property managers may request a credit bureau search to check your credit rating. This does not mean that a low credit rating will not enable you to obtain a rental home, but you may be considered a higher risk. If you have a judgment from a foreclosure process or other creditor, or have filed bankruptcy, this information may be listed on your credit bureau report, and impact your credit score.
Alternative to Bankruptcy and Foreclosure: Contact Us.
Our Company. GVC Property Solutions Inc. specializes in providing you with an alternative to bankruptcy and foreclosure. Contact us to provide a free consultation to discuss the different bankruptcy options and bankruptcy foreclosure options that are available to you in your individual situation.
We understand the stress and hassles that you face when you are in a difficult real estate situation. We don’t know how many months you’ve been trying to sell or have been looking for a solution to your situation. Don’t procrastinate. Don’t let your property situation become a liability or a burden.