A home foreclosure is a legal process that the bank can take to regain the money they paid out on a home. If the current homeowner stops paying their mortgage and hasn’t made a new agreement with the bank due to hardships, then the lender will use the process of foreclosure in order to help them repossess the property.
Any time a borrower takes out a mortgage for purchasing a new home, the home they purchase in the process will become the collateral for the loan in case something happens. This will give the lender the legal right to foreclose on the home any time the homeowner doesn’t make a payment. This allows the lender a way to sell the property and recoup as much of their financial loss as possible. Usually the borrower will have to miss a number of payments to set this in motion.
To initiate the foreclosure process on the home, the mortgage company or bank will need to follow some specific steps. The exact steps are going to vary based on the state laws concerning this, the program that is on the home, and the type of foreclosure. Because of all the different rules, it is important that a homeowner knows their rights and has a foreclosure lawyer on their side from the beginning to make sure they stay safe in the process.
In a judicial foreclosure, the lender is going to file a lawsuit against the borrower or current homeowner. They need to be able to win in court before the foreclosure process happens. There is also something known as a non-judicial foreclosure. In this process, the lender will not need to take the borrower to court and will just need to take other steps to make it happen.
Keep in mind that the bank or mortgage company can’t just take away the home at any time. The borrower will need to be in default, which means they do not pay their mortgage as agreed. When the borrower stops paying for some reason, usually after a few months, then it can trigger the process.
When you are dealing with a foreclosure on your home, it is important to look into foreclosure lawyers in Calgary to help you understand your rights and how to handle the situation. There may be options available to you, depending on what is happening, and we can work with you to make sure that you get fair treatment and no one is able to take advantage of you along the way. Look in your area to find the right foreclosure lawyers to make this process a little bit easier.
