must sell before the bank takes it

[Jana]

My friends are about to loose their house as their bank decided to start foreclosure proceedings after one missed payment! This home is located in Harvest Hills in Calgary, built in 1989, city assessment was $408,500, 2 story, 3+2 brms with developed basement, 3.5 baths, 1802 sq.ft with 1000 sq.ft in the basement. If you are able to move quickly and close on it before the end of the month, please email me for more details.
Thanks
Jana

 

[Smitty]

QUOTE (Jana @ Jan 13 2009, 01:24 PM) My friends are about to loose their house as their bank decided to start foreclosure proceedings after one missed payment! This home is located in Harvest Hills in Calgary, built in 1989, city assessment was $408,500, 2 story, 3+2 brms with developed basement, 3.5 baths, 1802 sq.ft with 1000 sq.ft in the basement. If you are able to move quickly and close on it before the end of the month, please email me for more details.
Thanks
Jana

Jana:

My understanding - could be totally wrong here - that foreclosure proceedings in AB take at least 3 months of missed payments for it to reach judicial process.

Plus, can your friends catch up, making a late payment? Usually foreclosure process stops if banks receive their money. They don`t like paying lawyers fees to drag the process out.

Just sounds fishy to me in terms of how quick this is happening.

Like I said, perhaps I`m missing something.

Smitty

 

[RedlineBrett]

QUOTE (Smitty @ Jan 13 2009, 01:41 PM) Jana:

My understanding - could be totally wrong here - that foreclosure proceedings in AB take at least 3 months of missed payments for it to reach judicial process.

Plus, can your friends catch up, making a late payment? Usually foreclosure process stops if banks receive their money. They don`t like paying lawyers fees to drag the process out.

Just sounds fishy to me in terms of how quick this is happening.

Like I said, perhaps I`m missing something.

Smitty

If there is no equity in the property then the redemption period can be as little as one day. Once the redemption period expires the court has the authority to force a sale of the property... but even then they have to wait for an offer to come through. If the seller finds a willing buyer most lawfirms will be nice and accept this offer and not trash the credit of the seller.

Typically it takes three months for an A-lender to begin proceedings, but some lenders start right away. Really depends what`s in the mortgage contract that was signed.

 

[Jana]

Brett, you are correct in assuming that there is no equity in the home as there are layers of mortgages and loans and it is the 1st mortgage lender that is foreclosing. As far as they`re concerned as long as they get their money they don`t care what the other lenders get. I`ve been an investor for a few years now and have never heard of this situation before! Beware of borrowing through B lenders, is my conclusion.

 

[RedlineBrett]

QUOTE (Jana @ Jan 13 2009, 02:24 PM) Brett, you are correct in assuming that there is no equity in the home as there are layers of mortgages and loans and it is the 1st mortgage lender that is foreclosing. As far as they`re concerned as long as they get their money they don`t care what the other lenders get. I`ve been an investor for a few years now and have never heard of this situation before! Beware of borrowing through B lenders, is my conclusion.

That is definitely an unfortunate situation to be in. Your friends would certainly not be the first people to have this happen to them though.

If your friends have any means to make payments they should do so. Generally the courts favor the homeowners and if there has only been one or two missed payments the judge won`t rule on a forced sale - they will ask the bank to negotiate a repayment plan with the borrower. The sooner they make a payment on that first mortgage the better!

They may also be able to consolidate their second, third fourth etc mortgages through one big second mortgage and save some payments. Possibly even credit card debt as well. There are credit assistance and bankruptcy consultants in town that can help with this.

 

[Nir]

Hi Jana,

That`s really unfortunate and weird. I can`t believe B lenders can be so cruel!
Obviously it`s a nightmare to deal with people who don`t pay what they owe whether a tenant or a mortgagor. but i thought there is a legal process that takes like 3 months that even the banks must follow before foreclosing.
However, honestly it still sounds like they should have the option to pay the balance by EOD tomorrow January 15th (maybe plus penalty) and resolve the issue with the lender. I don`t buy that they can not either do that or easily win in court.

Good luck to them,
Neil

 

[invst4profit]

As we are not being told otherwise I would guess the owners have no interest in keeping the home. This may have been conveyed to the bank at time of default resulting in the speedy foreclosure.

They may be looking to walk rather than take ownership of there responsibilities.

 

[GarthChapman]

QUOTE (invst4profit @ Jan 14 2009, 09:22 AM) As we are not being told otherwise I would guess the owners have no interest in keeping the home. This may have been conveyed to the bank at time of default resulting in the speedy foreclosure.

They may be looking to walk rather than take ownership of there responsibilities.

Greg`s right. Look behind the curtain. There is more going on that we are not privy to. The process in ALberta is one that is exceedingly fair to the homeowner.

 

[MikeMcCrae]

forclosure proceedings can be STARTED very quickly. Some lenders now start once you are 21 days late. It does take some time ( I believe 3 months) to make it happen but lenders are not waiting till then to start the proceedings.

 

[Nir]

I agree, Greg is right as usual!
Neil

 

[housedoc]

Act now!
I`m sure there`s nothing in in for Jana, right?
Look behind the curtain indeed!