Everyone needs financial help at any point of time to handle their life style. Some of the people approach bank and some of the people approach other persons. Approaching bank would be easier with limited documentation process. However, there are also some of the risks wherein people do not attempt to know it before the process. The interest rate of the loan will be high and it makes some of the people to stop paying the repayment process in some point of time. This makes the bank or lender to foreclosure the property to recover the remaining amount from them.
Foreclosure Process In Calgary:
Under the Law of Property Act, the lender is able to take control of the property of the owner to recover the money. This process involves demand letter from the lender through lawyer to the owner. In the demand letter, they specify a time period to repay the amount and in case of failure, the foreclosure process will begin. In such case, lawyer will send a statement of claim between the two parties namely lender and borrower which are considered as the beginning of the foreclosure process. Some of the possible options:
- No Action:
Most of the borrower did not considering the statement of claim letter from the lender. This will not provide any chance for the borrower to carry out anything from the property. To avoid this action, we need to issue a Noted in Default statement to the lender to initiate the process smoothly.
- Quitting The Claim:
If the borrower is unable to repay the amount, they can quit the claim and provide the property to the lender directly through Certificate of Independent Legal Advice document from the lawyer.
- Demand of Notice:
This is issued by borrower to lender to get notify every step of the process.
Steps On How To Stop Foreclosure:
- Negotiating With The Lender:
If the borrower is unable to get enough money for repayment and do not like to do foreclosure process, then they are able to approach a modification to the lending process. By providing a new payment plan, mortgage amount will be regular for the lender as well. This will be carried out by repayment and modification process.
- Refinance Your Loan:
Borrower has another option to refinance the loan to close the existing loan and continue with the current loan.
- Forbearance Plan:
This plan can help borrower to stop the repayment for 3 to 6 months and this time period, borrower is able to get some other help from other ways.