Category Archives: Foreclosures

Foreclosure Process in Alberta Part 2

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Foreclosure Process in Alberta – As a full-time Canadian real estate investor, we must fully understand the foreclosure process in our own province in order to both advise the owners we are helping and to take advantage of the legal processes and time lines to increase our potential streams of income.

We are continuing the article on the Foreclosure process in Alberta. We are up to the point where the lawyer has sent the defaulting owner a demand letter to which there has been no response.

Foreclosure Process in Alberta

Statement of Claim

The lawyer then issues a statement of claim to the courts. If, at that point, the lawyer does not hear anything, the lawyer searches at the courts to see if there was a statement of defense filed. If not, a notice of default is filed, which is basically saying “this client has defaulted. The mortgage payments were this much, the term was until whenever, the rate of interest was such and such.”

The Order Nisi

The owner will then be summoned to court to appear in front of a judge. At this point, an Order Nisi (order for sale) is filed, and the judge will assign a redemption period based on what the borrower’s chances of paying off this property are.

Foreclosure Process in Alberta Redemption Period

The redemption period is typically six months, which means that the owner gets to live in the property without paying for six months(although the mortgage payments, legal fees and interest are still racking up.

This period and the time leading up to this point is a golden opportunity for an investor to get in there, make a deal to take over that property, pay off the arrears, and be able to make some amazing money. In our real estate training we go into this process in great depth.

Order Nisi

Once the Order Nisi is filed, and the mode of sale is ordered by the courts there is still time to help that owner but we have to become even more creative in our strategies. This is why knowledge, skill and education are key in making lots of money in Canadian Foreclosures.

World Wealth Builders offers an intensive 3 day training on Foreclosures in Canada and highlights your province specifically.

In a future article, we will talk about all the advantages that the investor has to be able to capture equity in a property and be able to make tons of money while helping the person that is in trouble at the same time.Foreclosure Process in AlbertaForeclosure Process in Alberta

Happy investing!

www.WorldWealthBuilders.com/live

P.S. Take Action now to attend the eye-opening seminar and walk away with confidence, knowledge, and specific “action ideas” that can help you achieve your dreams and leave the rat race behind.

We have been training Canadian Real Estate Investors since 1993

http://www.canadianwealthbuilders.com/foreclosures-in-canada

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Canadian Foreclosure Process

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Canadian Foreclosure Process

 

A professional Canadian Real Estate investor should understand thoroughly about Foreclosure process in Canada.

The word “foreclosure” is a nightmare for the property owner as well as for the Lender. Although the numbers usually increase during the real estate bust cycle; it happens all the time.

If the person who borrowed money using a mortgage fail to pay back that mortgage, money-lender can use foreclosure as a legal action. Foreclosure allows the lender to take or sell that person’s house by first getting a Court’s permission to do so.

The property owner will not lose their property right away when he misses a mortgage payment or makes a late payment. Lenders don’t want to foreclose if they don’t have to because it is expensive and is a lengthy process. Not until two or three months after the borrower has stopped paying, would the lender probably start to foreclose. Usually, a lender will send out letters requiring payment. Then, if they don’t receive a reply, the lender will usually start to foreclose and to sue at the same time. The foreclosure process differs from province to province in Canada.

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Missing a mortgage payment in Canada

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Missing a mortgage payment in Canada

missing-a-mortgage-payment-in-canada

Missing a mortgage payment in Canada is 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.

Missing a mortgage payment in Canada

Missing a mortgage payment in Canada can trigger power of sale process in Ontario. According to 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 home foreclosure or Power of Sale

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

Foreclosures in Canada involve the court system. This means it is much slower; foreclosures can easily take 6-10 months. Foreclosures are more common in Nova Scotia, Saskatchewan, Manitoba, Quebec, Alberta, and British Columbia.

Power of Sale is much faster. 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. Ontario, Newfoundland and Labrador, New Brunswick, and Prince Edward Island.

1Missing a mortgage payment in Canada

Missing a mortgage payment in Canada

Step one: contact your Mortgage lender as soon as possible

Canadian mortgage lenders prefer not to go through 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 can be very reluctant to contact the Canadian mortgage lender or bank due to fear and not knowing what to expect.

With the majority of Canadian mortgage 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.

Missing a mortgage payment in Canada

2Step two: Inform the Canadian mortgage lender or bank if you are about the miss next payment

So call the Canadian mortgage lender or bank manager. Canadian mortgage lender or bank manager may not always be able to offer solutions but they can assist you to downsize to sell your property, refinance or obtain a loan from family and friends.

Missing a mortgage payment in Canada

Step three: Ignore and hoping all will disappear3

Ignoring is certainly drawing the attention of Canadian mortgage lenders or bank. Cooperation works much better and save cost and hassle for all parties in concern.

Missing a mortgage payment in Canada

Step four: Make mortgage payments first rather than unsecured debt

Make mortgage payments to keep your home

4The general rule is if you want to keep your home, your mortgage should take priority over paying the unsecured debts. You have many more options to deal with unsecured debt vs. secured debt.

Missing a mortgage payment in Canada

Step five: Consolidate all your debts into Mortgage

The cheapest way to rent or borrow money is first mortgage on your principal residence in Canada. Before you stop paying the unsecured debt to make the mortgage affordable, you should seek professional advice and ensure you have a plan in place to deal with the unsecured debt.

Finding a solution to deal with the 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 the mortgage easily affordable.

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.

Missing a mortgage payment in Canada

If you decide your house is unaffordable then there are 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.

Foreclosure Process in Alberta Part 1

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As a full-time Canadian real estate investor, we must create many ways of doing deals and making money. We need to create massive and passive income for ourselves that occur on a regular basis. If you are one of those real estate investors that is relying on one or two real estate agents to bring you deals, then you will indeed starve to death.

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Michael Jackson’s Foreclosure of Neverland

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Michael jackson’s foreclosure of Neverland was a shock to  world. With millions of foreclosures in the United States, most of us think that this can only happen to regular folks or working class people. However, even celebrities can have cash flow problems. The Foreclosure of Neverland ranch is a perfect example of how an over leveraged property can cause even the most famous of celebrities to go through foreclosure.

Foreclosure of Neverland

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What to do in Foreclosure or power of sale in Canada?

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What to do in Foreclosure or power of sale In Canada?

You need HELP with multiple options.

As full-time Canadian real estate investors, we are always on the lookout for good deals, while helping those in need.  With the recent economic downturn, a large market in foreclosures and power-of-sale properties have become  available  from those who have suffered the results of being unable to pay their mortgages.

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Profiting From Foreclosures in Canada Part 2

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Profiting From Foreclosures in Canada Part 2 is to provide you more in depth knowledge

If you missed the previous article – Profiting from Foreclosures in Canada Part 1

Profiting From Foreclosures

As a full time Canadian real estate investor, we will be able to create a lot of business by helping people that have got into financial difficulty and are in the midst of the foreclosure process. Real estate  investors  need to understand what the process is and the options for the person in foreclosure before being able to advise or help them. We are continuing in our “Profiting from Foreclosures in Canada” series.

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Foreclosures in Canada and Power of Sales

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 Foreclosures in Canada and Power of Sales are legal action taken by the lender when the mortgage are in arrears.

Most Canadians think foreclosures have not happened that much in Canada. In fact, most think that the sub-prime fiasco that the  United States has and is experiencing has not affected Canada. Let me tell you that that is not true.

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