Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Missing mortgage payments or being unable to finish paying off your mortgage all together is obviously the last thing you want to happen, but the reality of life is sometimes financial issues pop up and dealing with them can be very difficult.
We can’t stress enough that if you find yourself in a situation where you can’t afford to make your mortgage payments, do not under any circumstance ignore the issue. Banks are often less willing to renegotiate your mortgage if you ignore them. Instead, do the following:
No matter what the reason is, if you can’t make your mortgage payments, you should prepare yourself to hear the word foreclosure. While most lenders don’t typically want to go through the process of foreclosing on your home, if you don’t make your mortgage payments it is their legal right to do so and they will.
Instead of waiting around for the inevitable to happen, you should take responsibility, get informed and learn about the process of foreclosure. Once you understand the procedure as a whole you may be able to figure out either, how to avoid it or at least make the process smoother for everyone involved.
5 Mortgage Mistakes to Avoid, click here.
Foreclosure is a legal proceeding taken against a mortgage borrower who stops making payments on their loan. Since the house that is purchased with a mortgage acts as collateral for the mortgage loan, it can be repossessed and sold by the lender should the borrower stop making payments. Since a foreclosure is a legal proceeding, the lender must first get the approval of a court to repossess a house. Once the house is repossessed it is typically sold so that the lender can get back the money it’s owed.
The Process
Foreclosure is a serious issues and it could happen if you don’t make your mortgage payments on time, but it’s important to understand that the foreclosure process will not happen right away. Here’s what you can expect once you stop making your mortgage payments:
In Canada, the foreclosure process varies from province to province. So it’s important that you take the initiative to be informed as possible about how foreclosures are performed in the province you live in.
Generally speaking there are two main ways that lenders in Canada are able to recover their money, you should expect to go through one of the following procedures.
Judicial Sale
Judicial Sale or Judicial Foreclosure is heavily involved in the legal system; the foreclosure is performed under the direction of the Canadian court system. The process is typically slow and can take up to 6 months. Once the Certificate of Foreclosure is given to the lender, the ownership of the house automatically transfers to the lender. This means that when the house is sold, the lender will receive all capital.
Judicial Sale or Judicial Foreclosure is used in the following province:
Power of Sale
This process starts when the lender sends the borrower a notice and provides them with a 35 day redemption period. Within these 35 days the borrower can start making their payments again and get back on track. If a borrower is able to do this, the Power of Sale will not continue but they will have to cover certain charges associated with the Power of Sale.
A Power of Sale allows the lender to sell the house they are foreclosing on without the involvement of the court. This process is significantly faster than Judicial Foreclosure.
Power of Sale is used in the following province:
Looking for even more information about foreclosure in Canada? Read this article.
Dealing with a looming foreclosure it not easy but if prepare yourself, get in contact with your mortgage lender and are as cooperative as possible you can and will make it through the process.
Rating of 3/5 based on 8 votes.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Frank Mortgage is Canada’s one-stop shop for mortgages. Get up to $1,500 cash back on your mortgage.
Great unsecured credit card for customers currently in, or recently discharged from, a consumer proposal or bankruptcy
Earn an average 5%¹ cashback at thousands of partners and at least 0.5%² cashback guaranteed with Neo.
KOHO’s Credit Building Program helps you build a better credit history with easy to manage payments for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.