Got a phone call from a homeowner in the lower mainland this morning. He has just received a demand letter from the bank’s lawyer giving him some time to pay back his loan before they will start the foreclosure proceedings. Unfortunately in his case he cannot come up with the arrears and the only way out would be to sell the house. His question was: “Can I still sell my house at this stage?” The answer is “definitely yes”. As long as you are able to sell the house and have enough funds to pay back the loans you can sell your house and stop the foreclosure process. The sooner you sell the house, the less legal fees you will have to pay. I have advised him to contact a Realtor as soon as possible and put the house on the market.
One more detail worth mentioning – He also has a line of credit secured by the house and is currently in good standing. I did recommend making every effort to keep this one in good standing. Having one more foreclosure proceedings running in parallel will double the legal fees, clearly not a desirable situation