A foreclosure notice isn’t the end. At LeClair Thibeault, we will fight for your rights and help you work to find a resolution.
DONE NOW. DONE RIGHT. ®
Foreclosure is what happens when a person or corporate entity becomes delinquent on a mortgage. There could be more options for dealing with it than you think.
Your lender doesn’t want to foreclose
It may seem otherwise, but your lender doesn’t want to foreclose on the property. Banks and other lenders take losses when they need to sell foreclosed properties. If they can avoid having to make a short sale, they will.
Furthermore, if they believe that you can become current on the mortgage again, they’ll probably extend you better terms. A delinquent mortgage looks worse on their books than a modified loan.
Develop a financial plan
We can help you to argue your case more effectively. It is possible to realistically change the situation so that it becomes the lender’s advantage to keep you in the house, they’ll be less likely to proceed with foreclosure. If you have an interruption in employment or have suffered losses on investments, come up with a plan for how to replace the cash flow.
If the delinquency arose due to a temporary issue like a medical crisis, explain the situation in a letter.
Don’t stop communicating
Keeping an open line of communication with the lender is the most effective way for you to improve your situation. Avoiding phone calls might feel better, but that will just add frustration to the lender and make them less willing to work on negotiation with you.
In our experience, we have found that lenders are more willing to work with you if you express an interest in remaining in the home. We will help you articulate a financial plan for getting your payments current again with the mortgage and show that you’re willing to come to a payment plan.
LeClair Thibeault has been providing foreclosure defence in Calgary since 2001. Our expertise means we can help you navigate foreclosure proceedings while minimizing the impact on your credit and possibly staying in the home.
Write a letter of forbearance or hardship
The document that you want to draft is a letter requesting a forbearance or describing the difficulty that you are experiencing. Our lawyers can help you to format the message and advise you on what content to include.
Favourable letters establish why the difficulty is temporary and why it will be in the bank’s best interests to delay foreclosure or modify the mortgage. They also include a realistic improvement plan that consists of some solid figures.
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At LeClair Thibeault, we have built a reputation for being a trusted brand for real property law and commercial law in Alberta. Our corporate law services include helping you with tax planning, business sales and purchases, and commercial litigation.
Canadian foreclosure processes are well-defined by our legal authorities. You have more recourse than you might expect.
Precise foreclosure processes differ based by the Canadian province where the property is located. The same general principles apply to how the process goes. However, it’s possible to interrupt the process at every stage and to renegotiate the mortgage loan.
If you fall behind on mortgage payments for less than 90 days, the lender will not start foreclosure proceedings
When you fall more than 90 days behind on mortgage payments, they’ll file a claim statement.
15 Days to Respond
You have 15 days to respond to or rebut the claim statement. If you don’t respond, they may file to get a default judgment against you.
Sell The Loan
If this is not fulfilled, the bank will attempt to sell the loan to cover the difference.
Stay in touch
Stay current on all communications with the lender and other interested parties to avoid having a default judgment filed against you. If you keep talking, it helps your case.
Have an explanation
Even if the real reasons are too complicated or embarrassing to express, you should think about developing a convincing and true story about why you fell behind.
Laws differ by province
Consult with an experienced real estate lawyer about how foreclosure procedures may differ based on your province. The same general rules apply across all of Canada.
Come up with a plan
The sooner that you can establish a credible financial plan to get current on the mortgage again, the more effective your defence against foreclosure will be.
Foreclosure Defence Options
There are multiple options for defending against foreclosure in Canada. The right strategy for you will differ based on your situation.
No one wants to have to defend against foreclosure, but when circumstances push it upon you, that defence doesn’t have to be a desperate one. At LeClair Thibeault, we’ll explore your options with you so that you can make the most effective decision.
There are multiple strategic options you can follow:
Liquidate Other Assets
Liquidate other assets, consolidate debts, pursue strategic default options
Pursue loan modification to make the mortgage more affordable: extend the term of the mortgage, switch between variable and fixed-rate, or ask for relaxed payment terms
Sell the House
Sell the house to cover the cost of the mortgage
Refinance the mortgage
The right solution may not be to try to remain in the house. Stay open to other options so that you can make the most effective choice to avoid foreclosure.
Loan officers have heard many tales of hardship. By being direct, honest, and neutral in your communications with lenders, you can distinguish yourself.
Ensure proper procedure
Work with a top real estate law firm to ensure that all proper foreclosure procedures were followed. Keep records of all communications with lenders.
Involve your family
Keep everyone on the same page with financial plans and changes to behaviour to increase your chances of getting a successful loan modification or refinancing.
Get foreclosure refinancing from our trusted financial partners.
When approached through ordinary avenues for loan applications, many financial institutions will be reluctant to provide suitable terms on foreclosure refinancing agreements.
Thanks to the relationships LeClair Thibeault has established with financial institutions, we can help you secure refinancing agreements. Even if you have damaged credit due to foreclosure proceedings, there are still options. Our expertise in handling real estate financing agreements helps us to provide better foreclosure refinancing assistance than other law firms.
Switch Loan Provider
Switch to a different loan provider who may offer better service
Secure a better loan without the complexity involved with loan modification
Avoid the typical avenues for loan applications that could result in you receiving onerous terms on the agreement
Change up your loan
Get a longer-term on the mortgage, switch between variable or fixed rate, and work with a lender that will be more willing to be flexible on payment dates.
Help with credit issues
Foreclosure damages your credit rating, but it doesn’t have to mean having to accept bad refinancing terms. We can help you to arrange affordable terms.
Quality loan service
We work with refinancing lenders who are familiar with foreclosure refinancing. A quick refinancing can provide an effective and affordable solution to foreclosure.
You may be able to win better terms for your refinancing agreement by providing other assets such as investments, other properties, and cars as loan security.
Foreclosure doesn't have to wreck your credit permanently. We can work with your creditors to repair your credit at a low cost to you.
When a lender begins foreclosure proceedings against you, it’s a credit event that gets reported to all the Canadian credit bureaus. Fortunately, negative events can be expunged from your credit report with some co-operation from your creditors.
Many creditors are happy to consider debts settled or ‘paid in full’ in return for settlement agreements. We can negotiate with lenders and collection agencies to ensure that you get the best terms possible on your settlement agreements.
Repairing your credit after foreclosure can be a faster process than you might expect. It just requires a settlement and a payment plan negotiation. Our expert Calgary foreclosure defence lawyers can resolve even severe credit issues so that you can get affordable financing again in the future.
Debt Settlement help
Negotiating an adequate settlement can be challenging. We have experience negotiating agreements for delinquent, late, and charged-off debts.
Remove negative reports
Creditors can file to have negative credit events removed or marked as settled from your reports. We can help you to accomplish these negotiations successfully.
Negotiate payment plans
An affordable payment plan can stop penalty fees from accumulating and get your finances on the right track faster. It can also start rebuilding your credit quickly.
Halt collection calls
Working with creditors can get them to halt irritating and embarrassing collection calls immediately. When you start working with them, they stop.
A combination of strategic approaches is often the best way to put on successful foreclosure defence.
When many people receive a foreclosure notice, it’s often the cause of panic and family strife. Fortunately, with a solid strategic plan for foreclosure defence in place, there’s no need to worry. If you may become delinquent on your mortgage or have already received a claim letter statement, it’s best to develop your defence as quickly as possible. You can develop an arrangement that resolves the situation more towards your favour.
Be open to short sale
Selling the property faster can sometimes be the most effective way to stop foreclosure proceedings, especially if the property is worth more than the loan.
Examine credit options
Mortgage refinancing and debt consolidation loans can often be effective ways to become current on your mortgage again faster.
Work with the lender
Getting forbearance from the lender or modified terms can make other strategic approaches more likely to succeed. Keep in touch with them and stay honest.
Stick to a plan
Sharing a financial improvement plan with your lender and then sticking to it will enhance your credibility and increase your chances of getting a loan modification.
CONTACT US TODAY
Foreclosure is a sensitive matter. Protecting your privacy is our legal obligation. Our specialists are eager to help you to resolve your foreclosure to your advantage.
Your legal matter is important to us. You can either use our convenient online contact form or call our office for more information about working with us. We provide free fee estimates for real estate transactions and more. Your issue will be Done Now. Done Right.®