If you’re in BC and have become a victim of the Foreclosure Process, you may have heard of some of the legal options that you have available to you. Some of these options include getting a mortgage remortgage, getting a foreclosure petition to stop the sale of your home, and redeeming your home mortgage. All of these options are important to understand and consider if you’re facing foreclosure.
Redeeming your mortgage
During the foreclosure process in BC, there are many steps to take. Foreclosure happens when mortgage payments are late or not made at all. The lender files a petition for foreclosure and sends out letters to the borrower demanding payment. If the borrower fails to respond to the letters, the lender will begin the foreclosure process.
In BC, there is a statutory right of redemption. This is a legal procedure that allows delinquent mortgage borrowers to reclaim their homes.
To redeem your home, you will need to repay the entire mortgage balance and any other costs accrued by the lender. You will also have to pay any fees associated with the property.
The amount of time it takes to exercise the right of redemption varies from state to state. Some states allow a homeowner to redeem their home after just 30 days, while others allow a full year.
The right of redemption is only applicable if the property’s value is enough to cover the mortgage. It can be achieved through either a pre-foreclosure sale or by the borrower selling the property.
Although there are a number of factors to consider when redeeming your home, the worst case scenario is losing your home to the lender. However, if you are able to successfully redeem your mortgage, you will avoid foreclosure and get a fresh start.
A good rule of thumb is to redeem your home within the first three months after you’ve stopped making your monthly payments. The lender will send out letters requesting the payment of arrears and any legal fees incurred. After you have responded to these requests, you will have to stop all foreclosure steps.
Responding to a foreclosure petition
If you are facing foreclosure, you may want to seek legal advice before deciding how to proceed. Foreclosure can ruin your credit for years and prevent you from purchasing a new home. The process varies depending on state law and particular circumstances. You should contact a lawyer who specializes in foreclosures.
A mortgage lender can take action if a borrower fails to make payments. Generally, the lender will work with the borrower to make up the missed payments. However, if the mortgage has become delinquent, the lender can request court assistance to help recover the loan.
When a borrower falls behind on his or her mortgage, a lender sends a letter to the borrower requesting payment. This is the first step in the foreclosure process. After receiving the letter, the borrower has a short time to pay the mortgage, but he or she cannot sell the property without a court order.
If the borrower does not respond to the letters within the specified time, the lender will apply for an Order Nisi, which sets a period of time for the borrower to redeem the mortgage. In British Columbia, this is usually six months.
Once the Order Nisi is issued, the borrower has the option of paying the mortgage off in full, redeeming it, or filing a lawsuit against the lender to get a new mortgage. Normally, homeowners are allowed to continue living in their homes during the foreclosure.
Alternatively, the homeowner can apply to the court for an order to extend the redemption period. This is not an automatic right, however, so the homeowner will have to provide a reason for the request.
Order Nisi vs Order Absolute
If you are facing foreclosure, there are two main types of court orders you can receive: Order Nisi and Order Absolute. They differ in the process they entail.
An Order Nisi is a temporary order a court can issue in the foreclosure process in British Columbia. It provides the borrower with a specific time period to redeem their mortgage. This is usually six months.
In contrast, an Order Absolute is a final order for foreclosure, issued after the redemption period has expired. After the Order Absolute has been granted, the homeowner will lose all rights to their home.
Lenders often request an Order Nisi, which is a court order, to set the time and date for the next step of the process. However, some lenders may choose to seek an Order Absolute instead.
A petition for judicial foreclosure begins the foreclosure process in British Columbia. The lender’s lawyer files a petition in the B.C. Supreme Court, serving a copy on the mortgagee, all of the other mortgage signers, and all of the other interested parties.
Once a court grants the petition, the lender can then begin the process of selling the property. However, in most cases, the lender will want to obtain an Order for Conduct of Sale to maximize the value of the property before listing it for sale.
During the Order Nisi or Order for Conduct of Sale, the lender can also make an offer on the property, which must be approved by the court. For example, the lender might offer to sell the property “as is” or at a reduced price.
If the lender is successful in obtaining an Order Nisi and an Order for Conduct of Sale, they will be able to sell the property to pay off their loan. If they cannot, they may try to get a deficiency judgment against the borrower.
Steps to finding an alternative solution
In case you are facing the situation of foreclosure, it is advisable that you find an alternative solution. The worst thing that can happen to you is losing your house. To help you get out of this situation, you can use the following steps.
In the first place, you should hire your own real estate agent in BC. Your own agent can advise you on the best way to market your house. You also need to attend the court hearing. This way, you will have an opportunity to ask for more time to pay off your mortgage.
When you fail to make payments on your mortgage, the lender will send you a letter detailing the amount you owe. You will have to respond to this letter within 21 days. If you don’t respond, the lender will start the foreclosure process.
However, if you can’t afford to pay off the mortgage, you can try selling your house. A good real estate salesperson can help you sell your home in less than a week. But, you should be very honest when dealing with these people. Also, be prepared to offer partial payment deals.
Even if you have to take an extra loan to cover the mortgage, it is important that you keep your money in good shape. Make sure that you have a savings buffer just in case your job is lost or your income is cut off. Foreclosure can ruin your credit for years to come. It is advisable that you seek help from a mortgage broker who specializes in foreclosure loans. Moreover, you can consult Amanad Financial if you want to avoid foreclosure.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.