Have you just received a letter from a lawyer? Have you been served with a foreclosure petition? Before you take any further action please read this important message…
5 Foreclosure Myths That Are Simply
Not True in British Columbia
Myth #1 – If I miss few mortgage payments the bank reps can show up at my door and take my home
Truth: The foreclosure process in British Columbia is controlled by the BC Supreme Court. What it means to the home owner is that each step of the foreclosure proceedings has to be approved by a judge. Nobody can simply come and kick you out because you have missed few mortgage payments.
Myth #2 – If my property is being foreclosed on, I should move out
Truth: There are several reasons why you should actually stay in the property until it is actually sold or the foreclosure is being stopped:
- Yes, it is true that you are not paying the mortgage, but the mortgage payments are added to your bill. Sometime in the future we will be held accountable to pay back. No point to move out and rent another place, it is like making double payments.
- In fact the bank prefers the property remain occupied. Vacant property has higher risk associated with it; insurance fees are higher.
- Vacant property is often harder to sell. If you stay and take a reasonable effort to make it look good the eventual purchase price could be higher which will benefit you directly.
Myth #3 – The owner can no longer sell the property if the foreclosure proceedings have started
Truth: You may sell the house and redeem your mortgage anytime before the court orders the bank to sell it . 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.
Myth#4 – Not cooperating with the bank or professionals hired by the bank will delay the foreclosure process.
Truth: Because the foreclosure process in BC is already very long, not cooperating with the bank will hardly ever impact the time you have. On the other hand cooperating with the lender has several benefits:-
- When it comes to selling the property, if you support the Realtor by preparing the property for the showings, the purchase price is likely to be higher and you may end up with either more money in your pocket or at least less debt.
- Sometimes the bank’s lawyer has to ask the court to issue an order that helps him/her continue with the foreclosure proceedings. ( e.g. If they have to enforce showings to potential buyers because the owner won’t let the real estate agent in ). This can results in additional legal costs that are charged back to the home owner.
Myth# 5 – The bank’s lawyer won’t talk to me.
Truth: You will be surprised how helpful the bank’s lawyer could be if you ask legitimate questions and show a genuine interest in solving the problem.
If you would like to discuss your specific situation and the options available to you, I invite you to call my office at 1-800-224-2664 and talk to me. There’s no cost or obligation and we’ll hold everything in strict confidence.
Michelle Castillo – Modern Home Solutions
P.S. If you are behind on your house payments and don’t have an immediate plan to cure your default, it is only a matter of them that your name will appear on public record as “someone in distress.” Then you’ll have to deal with a barrage of real estate agents, mortgage brokers and real estate investors hoping to capitalize on your misfortune. Perhaps you’ve already experienced that! I hope not. It can be very embarrassing and upsetting. Call now!
Disclaimer: – The content of this page is for informational purposes. It is based on my experience talking to homeowners and visiting the court. I am not solicitor. I focus on providing practical solutions that may help BC Home Owners to avoid or stop foreclosure.
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