How to Stop Foreclosure

The foreclosure process begins when a homeowner misses consecutive payments on their mortgage loan. It is usually more cost effective for a lender to help a family remain in their home than to foreclose so banks are often willing to help their customers if they can. It’s important for homeowners to be proactive if they want to keep their property. Acting quickly gives a family a chance to explore all of the options available to them so they can learn how to stop foreclosure and be in control of the outcome.

Refinance

Refinancing may be the best way to avoid foreclosure but everyone won’t qualify for this solution. When a homeowner submits an application, a bank will assess the homeowner’s credit, income and the value of the property. Families who have lived in their home for many years and have a stable income are more likely to qualify. Refinancing pays off the old loan and starts a new one, often adding years to the time it will take to pay off the mortgage. However, in cases where the family is in danger of losing their property and can qualify for a new loan, refinancing could be the ideal choice.

Redemption

A homeowner might be able to redeem their mortgage after the foreclosure process starts by paying the amount determined by the court. The total amount might include missed payments, fees and court costs. The Supreme Court of British Columbia typically gives homeowners six months to redeem their mortgage but may offer less time at the lender’s request. Families that hope to save their home through redemption need to act quickly. If they don’t pay the full amount by the deadline, they will lose their home. Families with equity in their homes might qualify for a loan to pay off the past due amount.

Get Legal Assistance

Legal assistance may be warranted if the lender has treated the borrower unfairly. The court may offer remedies for a homeowner in this situation that could help them keep their home. Consulting with an attorney right away could help a homeowner avoid the foreclosure process altogether.

Financial setbacks are common. Many people miss one or more mortgage payments over the term of their loans. However, when a family cannot make payments because they have lost their primary source of income, it’s critical to learn all they can about how to stop foreclosure before their lender starts the foreclosure process. Homeowners should know they don’t have to leave their home until the court orders them to go. Although it may be less stressful to stop the process early, a family has until the deadline to redeem their mortgage and keep their home.