When Bank Says No,
We Say YES!

Your home is not only your biggest asset, it is your sanctuary where you live with your family – a place of peace and comfort, not to mention countless precious memories.

Unfortunately, sometimes a homeowner can fall behind their mortgage payments, due to loss of job, health issues, or some other unforeseen adverse event, leading the Bank to start the foreclosure process. By this time, homeowner’s credit score could also be a lot lower leaving them with very little options to save their home.

Foreclosure process is a very stressful time for the homeowner, but all is not lost. It is often the case that property being foreclosed has appreciated in value and it could be possible to arrange private financing to pay off the Bank and all other related charges, giving homeowner the time and peace of mind to start the process of rebuilding and repairing their financial situation. .

There is a simple way to stop the home from being foreclosed by catching up with all the money owed to the lender including fees. At GTA Mortgage Centre, we understand the difficulties the homeowner could be facing at the time of the foreclosure. We can work with the homeowner in an expedite way to give them all their options including private lenders and potentially selling the home at a higher price than the Bank would sell it for. Bank will not be concerned with how much money the homeowner would end up with after Bank collects the amount of their mortgage and all other additional charges.

What Is Foreclosure?

Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of the mortgaged property and selling it. Typically, default is triggered when a borrower misses a specific number of monthly payments, but it can also happen when the borrower fails to meet other terms in the mortgage document.

Consequences of Foreclosure

If a property fails to sell at a foreclosure auction, or if it otherwise never went through one, then lenders—often banks—typically take ownership of the property and may add it to an accumulated portfolio of foreclosed properties, also called real estate owned (REO).

How does foreclosure affect your credit?

A foreclosure can mean bad news for your credit score. It stays on your credit report for up to seven years and will drop your credit score significantly, making it tougher to qualify for credit cards and loan products or receiving exorbitant interest rates if you are approved. However, the impact will lessen over time if you manage your other debt obligations responsibly.

How long after foreclosure can you buy a house again?

Generally, borrowers whose homes have been foreclosed need to rebuild their financial health and creditworthiness before anyone will lend them money for another mortgage. Extenuating circumstances for certain types of loans, however, can possibly shorten the time frame.

How to get a mortgage after foreclosure?

Despite the foreclosure, you can own a home again with patience and strong financial habits. Before you attempt to buy, do the following:

• Rebuild your creditworthiness
• Focus on improving your credit score
• Re-establish income
• Save money
• Find a lender based on your needs and situation