Foreclosure

Are you looking for foreclosure homes?

When the housing market is bad, more foreclosure homes will appear as some home owners failed to make good on their mortgage payments. When their homes are deemed in default and not rectified, the banks will take possession of the homes and sell them in the market to recover the loans owing to the banks.

Foreclosure Process In BC

Whether a property is in Richmond, Vancouver or Burnaby, the foreclosure process for a home is regulated by the BC Supreme Court. The foreclosure process has to be approved by the Supreme Court, including when to selling starts, the terms of sale, sale price and commission to be paid.

Whether you are a home owner being foreclosed on, or a home buyer wanting to buy a foreclosed property, the info below could be helpful to you. For buyer of a Richmond foreclosed property, finding the information is the first step in buying a home under foreclosure. You can email me regarding your interest in buying a home in Richmond under foreclosure.

The foreclosure process us summarized below:

  • When a home owner stop paying the mortgage, the bank will phone call or write to the home owner to find out why and will allow a little time for the home owner to pay up the mortgage payments that are in arrears. After 2 to 3 months if the problem is not corrected, a letter from the bank will ask the home owner to pay the arrears in full before a certain date, failing which a lawyer will be hired to start foreclosure proceedings. View homes for sale in Richmond. 
  • If the arrears are not paid as demanded, the bank will ask a lawyer to start the foreclosure process. The lawyer letter will demand full payment of the arrears, or even full repayment of the mortgage. A deadline is given, after which the foreclosure process will start. Failing to settle the arrears with the lawyer, the court will be petitioned and the home owner will be served with a copy. All interested parties including other mortgage holders, tenants in the property, other lien holders etc will be served a copy of the petition. The home owner is allowed certain number of days to file a response to the petition.
  • About a month later, the judge in the first hearing in court will give the lender an “order nisi”, and in most cases, the home owner is allow time to “redeem” the mortgage by paying the full amount owing, plus interest, costs and taxes. The “redemption period” is usually 6 months, but the lender may ask the court for a shorter redemption period. Following the redemption period, the lender may seek approval by the court an “Absolute Order of Foreclosure”.
  • The court approves the sale of the property when an acceptable offer by the lender is obtained from a buyer. If the sale does not generate sufficient money to pay outstanding money owing, the bank can seek a deficiency judgment from the court against the home owner.
  • When an Absolute Order of Foreclosure is granted, the lender becomes the new registered owner of the property and all other respondents are removed from the title. Once this order has been given by the court, no further action can be taken against the borrower. An Absolute Orders of Foreclosure takes place only if the property value equals or exceeds the debt, and the borrower has no assets to apply toward any deficiency.

When a home owner is faced with the problem of no able to make the mortgage payments as required, it is in the home owner’s best interest to stop the foreclosure process as quick as possible. Most home owners would prefer to sell their homes before letting the problem deteriorates resulting in having to deal with a foreclosure.

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