Concerned about foreclosure? While many will be ringing in 2021 with New Year celebrations, those who are in the foreclosure or pre-foreclosure process due to loss of income caused by the pandemic will soon see their EI, CRB, CRSB, CRCB, and many other Canadian government assistance programs end. Without a certain and definite solution to financial woes, an immediate response to alleviate yourself of the impending loss of your home on your own terms is the wisest response. Educating yourself on your options can help you to focus your efforts towards recovering what you can from the property and avoiding the long-reaching consequences of foreclosure. By working with a professional house buyer you can rely on, you will have a guaranteed closing date and will not have to worry about dealing with inexperienced cash buyers, who are often backing out of deals at the last minute or cannot qualify for financing after holding up your sale. Without doing what it takes to ward off the Court of Queens Bench proceedings, here is what the end of the mortgage deferral period may mean for homeowners in Calgary.
Dealing With Foreclosure in Calgary
This is not the time to stick your head in the sand! Homeowners will begin to receive notifications from their lenders. Usually, there is a time period allowed for the homeowner to make the mortgage payments current. Your best scenario is to communicate with your lender, tell them about your circumstances and see if there isn’t some solution that can be reached. Try to do this before the bank has to send a demand letter because the account is too far in arrears. Depending on the circumstances, you may need an attorney. Fees for legal assistance in foreclosure proceedings vary, many attorneys offer a flat fee arrangement, ranging from $1,500 up to $4,000. If you get a notice from Court of Queens Bench that says “You are being sued” then a lawyer is no longer a option, consult with a legal attorney immediately. Once it gets to this point there may also be additional charges for itemized expenses such as court costs, postage or even travel. The end of the mortgage deferral period may mean further indebtedness for already strained homeowners in Calgary.
At the end of the mortgage deferral period, the payments on the mortgage that are past due will have been added into the loan, however, there will be no further acceptable delay on the monthly payments that follow. Our home is usually the largest investment we make and over time our equity is built. Without the intervention of life-changing circumstances, such as returning to work or new employment, the end of the Canadian COVID-19 government assistance programs may mean loss of the equity in the property for homeowners in Calgary. You may also still owe any difference in the amount the property sold for against your remaining debt on the mortgage to your lender, known as a deficiency, after the foreclosure has been sold. A foreclosure will remain on your credit report for a period of 7 years and you will be explaining it away on credit applications much further than that as most applications ask if you have “ever” claimed bankruptcy. Higher interest rates will add to your costs of living on any credit you do qualify for, and in some cases, your chances at a job may be jeopardized by your credit history as well.
The end of the mortgage deferral period and Canada’s COVID-19 government assistance programs may mean eviction for homeowners in Calgary. As the process moves forward, leading to the final step in the foreclosure process, the new owner takes possession. An eviction process will be carried out, eventually leading to the homeowners receiving notice of when the possession will take place, and the property must be vacated. This time period can vary, from three to 30 days. Then you will be faced with the expenses of moving as a renter. you will need funds for deposits and utilities and everything involved in starting over in a new residence. Do not delay, if there is no resolution to your financial situation in sight, you may want to consider selling your house now. Likewise, you may pay more for rent or may even experience issues in being accepted as a tenant. Experiencing the loss of your home in foreclosure and the eventual eviction that follows is emotionally draining in addition to the negative financial aspect. If you don’t plan your life, others will do it for you, so the time to act is now!
The end of Canada’s COVID-19 Economic Response Plan may mean enduring painful financial loss, watching your credit be destroyed, paying for an unsought relocation, and additional debt for homeowners in Calgary. Through either a traditional listing with a real estate agent or selling on your own, there is no guaranteed closing date or even if the home will sell. When you consider both the immediate and long term costs, it may be worth selling now at a lower rate than the traditional market, to guarantee your closing date and protect your future. Sell now to ASAP House Buyers and avoid the loss of your home and all of the hidden costs of foreclosures. We’re happy to answer any questions or concerns you may have. To learn more about us and see what we can offer, send us a message or give us a call today at (403) 613-8119.