Mortgage in Foreclosure
Foreclosure is the legal steps that a lender takes to recover arrears and principal on mortgage loan that is in default. If your Mortgage is in Foreclosure, contact us right away, as our lending partners are specialized and will help take steps that can stop the mortgage foreclosure from proceeding.
The first step is to contact us for more direction. We will do a fast analysis of the foreclosure situation, and will require details of the existing mortgage in foreclosure. Specifically-
Have you been served with a Statement of Claim, or equivalent?
How much is left owing to the existing lender, and, what is the amount in arrears?
Has an appraisal been done yet? If so, what was the value established by the Appraiser? When was it done?
What are the circumstances that landed you in this situation?
The Statement of Claim is the first step in the foreclosure action. The lender must have filed the Statement in the Court and served a copy on you. The Statement will set out the amount of money you owe to the lender, and ask the Court to enforce the mortgage and grant the lender the remedy needed to recover its debt.
The lender will also file an Affidavit of Value that states the value of the mortgaged property. This document will also be served to you with the Statement of Claim. If you do not file a Statement of Defence, or a Demand of Notice in the time allowed, you will be noted in default by the lender. If you are noted in default, then you are deemed to have admitted the allegations made by the lender in the Statement of Claim.
You will be given time to repay the debt. This period of time is known as the Period of Redemption. No further action will be taken by the lender until this time period expires. For residential property in a city the maximum redemption period is typically 6 months. For agricultural lands, the maximum redemption time is 1 year. The Court may extend, or shorten the time period, or the period of redemption. It will depend upon the circumstances of your situation.
The redemption period can be shortened to as little time as 1 day if the lender can show the Court:
- That there is no equity in the property,
- It is unlikely you will ever be able to repay the amount owing
- The property has been abandoned,
- The value of the property will be decreased over the redemption period.
DO NOT IGNORE THE STATEMENT OF CLAIM that will give you notice of the foreclosure action, and immediately consult a lawyer to protect yourself – Then contact us, because Canada West Mortgage arranges mortgage financing for clients with all types of credit profiles- from excellent to poor. For us, Equity is King. Canada West Mortgage has successes where many big banks fail. Bad credit, debt consolidation, purchases, refinances, renewals – Even properties in mortgage foreclosure.
We look at residential detached homes, condos, mobile homes on owned land, and raw land acreages. Commercial properties as well! We will consider properties up to 80% loan-to-value in larger urban areas, and reduced LTV’s in smaller, rural areas.
Under our Alternative Lending program, occasionally our lenders will consider assets other than real estate as additional security if needed (IE, vehicles, heavy machinery, mobile homes on leased land). Typically these assets have to be unencumbered for us to consider them.
We lend in Alberta – Calgary, Edmonton, Red Deer, Lethbridge, Grand Prairie, Leduc, Olds, Medicine Hat and surrounding areas. We also now lend in Manitoba! – Winnipeg, Steinbach, Morden, Selkirk, Brandon, Portage La Prairie and surrounding areas.
Contact me and tell me about your situation!