Category Archives: Foreclosures

Quebec Foreclosure Process

Quebec Foreclosure Process starts when a mortgage holder is in default of payment. The mortgage lender issues the home owner a 60-day notice warning them that their mortgage is in default and that their property will be seized if they do not remedy the situation. In most cases, it is assumed that the property owner will find a way to repay the amount owed.

Quebec Foreclosure Process

There are certain Quebec foreclosure process that a mortgage lender or bank must follow before they can start a home foreclosure. The first step in the Quebec  foreclosure process is that a mortgage lender must apply to a court for an order. If there’s a Supreme Court Registry in your local town or city, the mortgage lender is usually required to start the Quebec foreclosure proceedings there, unless you agree to file the papers at a different location.

Quebec Foreclosure Process

 

Once the court has the filed order a “petition for foreclosure” will be sent to you this is a copy of the lender’s foreclosure application to the court. The mortgage lender  can also ask the court to sue you for any amount money that you may still owe on the mortgage.

Right of Appearance

As the home owner in Quebec you have the right to request an Appearance form from the court registry. The Appearance form must be  completed and filed at the court address shown on the petition. The Appearance form requires the mortgage lender or any other person to notify you of any further steps  or filings that relate to your property. If you don’t file the Appearance form, the mortgage lender can proceed without  informing of the legal proceedings or the status of the foreclosure. Once the Appearance form is filed, you will get a document called a “Notice of Hearing”, which tells you when the lender will ask the judge for an order to start the foreclosure process.

Quebec Foreclosure process Redemption Period

The home owner  is given time to “redeem” the mortgage by paying the full amounted owed, plus any interest, costs and taxes to the lender. This time period is called the “redemption period” and it’s length can vary but usual time for this is about 6 months, you can also ask the judge for a longer period of time to get the money required to pay off the mortgage or sell your home. The Quebec foreclosure laws are designed to give the home owner every chance to redeem the mortgage.

Avoiding Quebec Foreclosure process

If you face a potential foreclosure in Quebec, you should take immediate action as per following recommendations from Canadian real estate investment experts.

Contact your lender immediately. Foreclosures are an expensive and time consuming process, so it’s likely your lender will be eager to avoid it if there is a better way for them. Communicate directly with the mortgage lender with your particular situation. You both will find a better resolution than anyone else.

Forbearance :Depending on your situation, here are some options you or your lender might suggest: Ask for extra time to make up your payments Lenders might agree to wait before taking legal action against you and let you work out a repayment plan that is affordable for you

Mortgage Modification : Every  mortgage lender or bank is different. Ask the mortgage lender to change the interest rate to a more manageable level. A lender might also extend the amortization period which will lower monthly payments.

Avoiding Quebec Foreclosure options

Increase the Mortgage amount : Some lenders may offer to spread out missed payments over a longer term. Re-calculate and refinance the mortgage If the home owner have enough equity and meet the lender’s requirements, the lender may increase your mortgage amount.

Consolidation: Home owner  may also refinance by wrapping other debts into your mortgage By putting your 20% – 30% interest debts like credit cards into your mortgage.  Paying them off, and increasing the mortgage amount, you will decrease your overall monthly debt load.  As long as you’re pretty sure you can keep up with payments, it’s not a bad option.

Mortgage Default Insurance If you happen to have hi ratio mortgage on your home then you may get some temporary protection from foreclosure and power of sale in Canada. Default mortgage insurers carry programs that help struggling homeowners to temporarily pay interest only, or to forgive some of your payments.

Canadian private hard money lenders: Consider getting secondary mortgage from a Canadian private hard money lender. They do not care about your credit score, income. All they want to have AACI appraisal to see that there is enough equity.

Family and friends: Asking help from family and friends can be quick solution too. Mom and Dad's bank can be the super choice.

Quebec Foreclosure Process

Sell it for instant cash and fast closing :   One of the best option is for the home owner is to sell their property to Canadian real estate angel investor for cash with fast closing. Save the hassle, legal cost, credit and downsize with pride.

Words of Wisdom

Words of wisdom from Canadian real estate investment expert, Navtaj Chandhoke "Most important for every home owner must have skip a payment plan built in their mortgage. Be aware of all the penalties due to default. One of the worst penalty is interest rate differential which can give you the shock of your life. The property will be  foreclosed if the home owner is not able to repay the full amount that is owed".

Dealing with a looming foreclosure it not easy but if prepare yourself, get in contact with your real estate lawyer.  Be cooperative as possible you can and will make it through the process. Knowing the Quebec foreclosure process professional real estate investors can help home owners and make money.

Quebec Foreclosure Process

 

 

 

Missing a mortgage payment in Canada

Missing a Mortgage Payment in Canada

missing-a-mortgage-payment-in-canada

Missing a mortgage payment in Canada is a serious matter. The reason a Canadian homeowner goes into foreclosure or power of sale is important for all to understand. As a Canadian homeowner one can be prepared for such a situation as the aforementioned, and as a Canadian professional real estate investor, one can be informed as to what causes foreclosure or power of sale and how to be of service. Death, job loss, medical expenses, and divorce are a few of the most common reasons Canadians face foreclose or power of sale on a home. These factors are real and an everyday part of society.

Falling behind on your payments can trigger power of sale process in Ontario. According to the Ontario Mortgage act 'Where a mortgage by its terms confers a power of sale upon a certain default, notice of exercising the power of sale shall not be given until the default has continued for at least fifteen days, and the sale shall not be made for at least thirty-five days after the notice has been given'  R.S.O. 1990, c. M.40, s. 32.

Missing a mortgage payment in Canada and cash flow issues going on and Canadian home owners try to juggle and decide which debts to repay. It’s tough but can be worked out.

Canadian Homes: Foreclosure or Power of Sale?

Both circumstances are a legal process designed to provide the Canadian lender an option to sell the property in the event the Canadian homeowner defaults or misses several payments.

Foreclosures in Canada involve the judiciary system, making it a much slower process which can take up to 6-10 months to resolve. We see foreclosures most commonly in Nova Scotia, Saskatchewan, Manitoba, Quebec, Alberta, and British Columbia.

Power of Sale, on the other hand, is much quicker. In some cases the power of sale can happen within weeks, but you will generally have a 35 day redemption period. This means you will have 35 days after being served notice to pay all your debts (including incurred fees) and get thing back on track. Power of Sale is currently being seen frequently in Ontario, Newfoundland and Labrador, New Brunswick, and Prince Edward Island.

What can you do about missing a mortgage payment?

Option 1: Contact your lender or bank as soon as possible1

Canadian lenders would always prefer not to go through the foreclosure or power of sale process. Their goal is to safeguard their investment and assist Canadian homeowners to find a reasonable and affordable solution.

Canadian homeowners tend to be very reluctant to contact their lenders out of fear and uncertainty.

With the majority of Canadian lenders, being forced out of the home happens only when all efforts and options have been fully explored.

The Canadian mortgage lenders may be able to offer you following four options

  • Change amortization to lower monthly payments
     
  • Switching from a variable rate to a fixed mortgage to provide a consistent payment plan you can budget for without fear of any future interest rate increase
     
  • Refinancing or second mortgage
     
  • There may be an option to add missed payments to the back of your current mortgage

There is limited action the Canadian mortgage lender or bank will take in the early days besides calling you and remind you to pay in time.

Option 2: Ignore and hope it will all will disappear3

Ignoring your oustanding debt will certaintly draw the attention of Canadian lenders and banks. In the long run, cooperation works much better and saves you the cost and hassle for all parties involved.

Option 3: Consolidate all of your debts

The cheapest way to rent or borrow money is with your first mortgage on a principal residence in Canada. Before you stop paying the unsecured debt to make your payments more affordable, make sure you seek out professional advice in order to plan your financing.

Finding a solution to deal with any other debts i.e. credit cards, lines of credit, consolidate loans etc. is all the help people need to obtain a positive cash flow each month and make paying down their debts significantly easier.

One of the key things to look at if you are about to miss a mortgage payment is whether you can afford the house you live in, or whether you’re over-extended on your debt.

If you decide your house is unaffordable then there are essentially two options.

  • Obviously if there is equity in the house, selling the house is the best option.
     
  • If you are in a negative equity situation then this needs to be carefully planned and professional advice is required.
     

4Option 4: Make payments first rather than unsecured debt

The general rule if you want to keep your home is, your mortgage must be the top priority over all of your other debts. You will have many more options to deal with unsecured debt vs. secured debt.

Power of Sale Procedure in Ontario

Power of sale procedure in Ontario is used when the homeowner defaults on mortgage payment. This is a remedy or recovery for the lender to secure their investment. Both the lender and the homeowners have to follow power of sale procedure in Ontario. Professional real estate investors can help you if required.

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