BC Foreclosure Mortgages are one of our specialties

We’ve all heard about the massive opportunities in the US that investors were able to take advantage of when thousands of homes were foreclosed on. The wave didn’t fully reach us here in BC, but foreclosures do present opportunities for sharp-eyed buyers nevertheless.

What is a Foreclosure?

Amidst all of the controversy of the past few years, the word foreclosure has been batted around constantly, but few people talk about what it actually means. A foreclosure is an action exercised by creditors in extreme situations where debtors have defaulted on their payments and have no prospect of resuming their payment schedule. A foreclosure comes after a significant amount of safety nets are exercised, especially here in Canada. In the unfortunate event that a homeowner is still not able to fulfill the contracted financial obligation, the creditor will close the contract and conduct a forced sale of the property. The sale is typically, but not always, conducted by public auction.

BC Foreclosure Mortgage Process

When a homeowner defaults in BC, the bank will typically ask for the mortgage to be settled in a very short period of time. Of course the majority of owners who have already defaulted on their payments are unable to then come up with the cash to cover the outstanding balance, so the property is listed with a real estate brokerage who lists it on MLS.

The next step is for a bid to be accepted. Unlike a traditional home sale, the accepted bid in not necessarily the one who ends up walking away with the keys. Once a price is agreed upon, the property and the bidder appear before a judge. At the hearing, other bidders are given an opportunity to enter bids that exceed those pledged by the original bidder. The bidders are typically a small group of investors who have a careful eye on the foreclosure market because homes sold at court auction must be bought outright. They cannot be financed through traditional forms of property mortgage.

How to Avoid Foreclosure

We’ve all been there. Times get tough and money gets tight. Personal injury, illness, increasing debt interest rates or the loss of employment can all put good people in bad situations. The most important step is to identify the challenge as early as possible and get a professional on your side. There are a variety of options available that can help to bridge difficult times including refinancing, consumer proposals and home equity loans.

To speak with a trained professional who can help guide you through the process of maintaining financial stability with a BC foreclosure mortgage click:

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