If you’re one of the many homeowners that got hit hard by the COVID-19 pandemic and are now worrying about the loss of your property, this post is for you!
No matter how bad hearing foreclosure might sound, you still have options to stop the process in its tracks when working with the right mortgage broker.
As one of the most trusted private mortgage broker in Vancouver, there are some things that we can advise you on so that you can avoid foreclosure and get your mortgage back on track.
Knowing quite well that financial setbacks and unforeseen situations might appear in anyone’s life, in this post today we will dive deep into how any homeowner can stop or stall the foreclosure process. We will also discuss some of the best alternative lending solutions that anyone facing financial hardship should consider.
If you are a property owner who is having trouble keeping up with mortgage payments, make sure you follow us till the end. What we want you to understand is that even if you find yourself one minute away from foreclosure, you can still gain back control of your personal finances and find help with your mortgage expenses.
But, this can only happen if you are well informed!
Most people believe they know everything about how their mortgage or loan works, to only realize when it’s too late that they are missing essential information.
The key to saving your property relies on how well you understand both your situation and your foreclosure mortgage financing solutions, before taking a final decision.
The COVID-19 Pandemic Consequences In British Columbia
The COVID-19 pandemic has left the entire world battled, bruised and bleeding.
After having had our lives put on hold for almost three months, the social restrictions are finally relaxing but the economic disruptions are nowhere even close to finding relief.
It’s no surprise that the effects of COVID-19 and its aftermath on the Canadian real estate market are closely supervised.
With the next six months still uncertain, the foreclosure panic alarm is already ringing and the number of foreclosure proceeding cases are expected to spike everywhere throughout the country.
As bad as things might seem right now, they could certainly get even worse once the mortgage crisis — already affecting thousands of homeowners — will take its complete toll.
And if we are to lean an ear to what authorities have to say about a second or third wave of virus outbreaks expected to hit starting autumn, immediate measures and smarter financial decisions should be considered…immediately.
It’s impossible to predict what a new wave of coronavirus could mean for BC’s economic and financial sectors, but one thing is certain…
…the real estate market will most likely collapse if we have six more months of standstill.
How To Find Help With Your Mortgage When Facing Foreclosure
There are many questions tormenting mortgage owners who are threatened by foreclosure.
Will the real-estate market return to normal in the nearest future?
Am I going to face judicial foreclosure?
Are there any foreclosure mortgage lenders I can trust with some pertinent advice?
Foreclosure is a word no homeowner wants to hear. It’s one of those dreaded events that can result in breakup of families, huge financial loss, and a lifetime of credit damage.
Although for many people foreclosure is just a one time event, its consequences can last a lifetime. That’s why, if your home is at risk of foreclosure, urgent measures should be considered immediately.
And if you’re left wondering why the Canadian real-estate sector is in such hardship and facing so many cases of foreclosed homes, we’ll dive into that next.
Foreclosure Mortgage Problems In British Columbia
With the Canadian real estate bubble weakened by debt, the coronavirus pandemic came onto an already injured field.
Left without jobs and in many cases without any financial resources, a lot of property owners are finding it increasingly difficult to keep up with monthly payments to mortgage companies.
In this current market where people are trying to figure out how to survive rather than thrive, the worst affected by the current financial situation are young, first time homeowners. Having fewer savings and relying on their monthly paycheck to cover mortgage payments and loans, many were left unemployed or had to close their businesses because of the coronavirus standstill.
The situation is difficult not only for them but for everyone on the market, from small home owners to big real estate investors, and the greatest challenge comes from the uncertainty of the lending situation in BC.
In order to protect themselves, many financial institutions have tightened the lending criteria and restricted the types of loans they offer.
While some of the mortgage owners were backed by the government during the state of emergency, that wasn’t the case for everyone.
For those that didn’t have a federally owned or backed mortgage, and are in need of help with their mortgage to avoid foreclosure, the solutions depend entirely on each lender’s willingness and internal regulations.
The problem is that not all financial institutions are willing to extend a helping hand and agree to payment deferrals, waivement of late fees, or refrain from sending a negative credit report to credit bureaus.
Unfortunately, no matter what your motive might be to get behind with your mortgage payments, the reasons won’t matter much for your lender or the court. The only thing lenders usually care about is to solve the problem by re-installment, pay-off, or a foreclosure sale of your property.
What’s worse is that with the market still in limbo, even if you are rich in equity, you might not be able to tap into it — and the money might not be as readily available as it once was. The market value of properties on the Canadian real-estate market witnessed a huge drop and there’s a very slim chance right now that you will get back your initial purchase price.
Steps To Solving Your Foreclosure Problem With a Mortgage
First thing first, unless you have already done that, if you find yourself in desperate need of urgent mortgage relief you should immediately contact your lender.
An honest discussion with your loan servicer about your current financial situation can offer you a general idea about what your options are to avoid a legal process and the foreclosure sale of your property.
Make sure to ask your bank all the additional information that you need and check to see if they are willing to offer extended time frame programs for mortgages and loans.
If so, make sure that these programs apply in your case too!
What you should be aware of, is that mortgage relief programs are different from lender to lender.
Although most lenders are not interested in foreclosing your home due to the time and costs involved, you should still be very careful about what they offer you as the best option, versus what you will actually receive in the long run.
Even if no one except scammers would plan on defaulting when offering a loan, these things can still happen and that’s why you should make sure to have yourself covered by properly understanding the terms and conditions of your mortgage.
For example, you might be allowed to reduce or pause your loan payments but in most cases, the interest can continue to accrue even during the forbearance period and you might end up with an increased overall cost of your mortgage.
Also, don’t mistake forbearance with loan forgiveness. Even if your bank will agree to offer you temporary relief, it will not offer sustainable help in the long run.
The forbearance period generally agreed by most banks in Canada is 90 days from the beginning of the coronavirus quarantine.
…and the time is now up.
Wondering Which Are The Best Foreclosure Mortgage Lenders?
Once you already have a low credit score, mortgage problems, or you are one minute away from getting evicted from your home, your financing options will be quite limited since not too many lenders will trust to back you up.
With the financial market still in limbo, most of the big banks are trying to secure themselves and minimize their losses as much as possible.
No matter if you’re facing foreclosure because:
- You cannot pay your mortgage after you lost your job
- You tried real estate investing and lost a lot of money by paying too much on a property
- You lost a tenant or your tenant is unable to pay the rent because of financial difficulties
- You have underestimated the repairs on your home
…your best option is to talk to a private mortgage lender that is specialized in helping you avoid foreclosure and get back on your feet.
A qualified private mortgage broker will be familiar with everything regarding foreclosure proceedings in BC, redemption laws or bankruptcy filings.
As our client, you will not only have access to the best b-lender mortgage on the Canadian market, but you will also benefit from our complete assistance, guidance and education to get back on your feet, save your house from foreclosure. We can even help you go back to working with the banks in as little as one year.
The entire process from the moment you contact us until you get your mortgage approved will be nothing but easy, accessible and hands-on.
Our extensive portfolio of alternative mortgage lenders includes many that are specialized in solving foreclosure processes and getting your mortgage back into good standing.
And the best part is that even during difficult times like these, most of our private lenders have not changed their lending guidelines, and can offer you solutions that retail lenders may not.
With home equity being our main interest, we are still willing to work with clients that are facing major credit challenges like being on the verge of foreclosure or having no income whatsoever. Having a HELOC or second mortgage approved by our private lenders can help you afford your first mortgage payments and reinstate your loan.
Although the monthly rate of a private loan or second mortgage might be slightly higher than what you were used to, remember that these lenders are taking a huge risk when accepting you as a client. Also, no matter how high the costs might be, it’s still insignificant compared to losing your home.
And if you are wondering what the process of working with us is like? Things couldn’t be more simple.
We need to save your home, so we don’t have time to lose on endless paperwork and never ending bureaucracy. As surprising as this might sound, we can arrange for you to get a mortgage for foreclosure financing of up to 70%, with approval in less than 24 hours!
After assessing all the important details like your current home equity, mortgage situation and how close you are to foreclosure, we will work side by side with our lenders and legal advisors to decide what could work best in your situation.
Being able to compare mortgage rates simultaneously, we can easily find the best loan program for you, with the lowest rates and the best deal structure.
So what are you waiting for?
Contact us today and let’s talk about how our foreclosure mortgage lenders can help save your home.