Top 5 Foreclosure Mistakes Done By Homeowners

foreclosure process in alberta

A mortgage foreclosure can be devastating for you and your family, especially when you are not prepared. On top of that, the foreclosure process in Alberta can be difficult to comprehend if you don’t have any legal counsel. No wonder more than 4556 foreclosure cases happened in Alberta in 2017!

You might find yourself getting sucked in a whirlpool of problems that never seem to end. With so many issues to deal with, people expecting a foreclosure end up making many mistakes that could have been easily avoided. These mistakes eventually turn into a disaster and can cost you your home. 

If you are a resident of Alberta and don’t want to deal with a foreclosure, the article below mentions the top 5 mistakes that you need to avoid.

Ignoring bank notices

The foreclosure process in Alberta can take months or years, and your lender may try to contact you several times throughout the whole period. You may want to avoid being confronted by bill collectors or have other reasons for avoiding calls from the bank, but ignoring the problem will not solve it. Failing to communicate with your lender could be the worst thing you can do. You may miss out on opportunities to save your house if you avoid communication with your lender. You might also cause your lender to speed up the foreclosure process against you.

Damaging the property

Damaging the property is one of the worst things you can do as a homeowner. The foreclosure process is, without a doubt, aggravating. However, causing any property damage is not acceptable. Your actions may end up costing you more money in the long run. And, if the harm is severe, it may have legal consequences.

It’s also a grave mistake to neglect routine property maintenance. If you manage to work things out with the bank, this could come back to bite you if you find a buyer and try to sell the house later.

Not knowing anything about the foreclosure process.

The foreclosure process in Alberta is pretty complicated and requires a legal representative to deal with different legalities involved in the case. Get as much information as possible about how a foreclosure is processed. 

Be aware of the legal ramifications so that you are not caught off guard later. After you hand over the keys, the foreclosure does not go away. It will appear on your credit report for many years.

To initiate a foreclose, banks must adhere to specific rules. You might be able to buy yourself more time if you discover that they aren’t following the rules.

Also, familiarise yourself with various possibilities. For example, a short sale occurs when a bank enables you to sell your house for less than the mortgage amount, and hence is a better option than foreclosure. To avoid losing your home, you might want to consider filing for bankruptcy.

No regular Maintenance

When people have trouble paying their mortgage or view foreclosure as a possibility, they cease caring for their homes. It can make a short sale more challenging and complex for the bank to sell the house.

Not accepting the outcome.

It would help if you started preparing for foreclosure as soon as you received the first notice. You’ll need to find a new home to live in, pack your stuff, and hire help to move your belongings. The sooner you accept that foreclosure is unavoidable, the sooner you can start taking care of all of these matters. Preparing for the worst will ensure that you don’t end up scrambling or have no place to live when you’re evicted from your house.

Foreclosure demands the best legal representation to lead your case. Make sure your lawyer has all the necessary information about the subject and takes action accordingly.