Strict foreclosure, by definition, is a form of judicial foreclosure where the lender asks the court for title to the home, rather than having a court-ordered sale. The main difference is that at the end of the process the lender ends up with title to the property and has no obligation to sell it, whereas in a conventional judicial foreclosure the court usually sells off the property and then distributes the proceeds to the lender and any other lien holders. Strict foreclosure is actually the original type of foreclosure, but nowadays it is much less widely used. It is not – – Read More..
A REO foreclosure, by definition, is a bank-owned property that went back to the mortgage lender after an unsuccessful auction in a foreclosure process. This is because most foreclosure auctions do not produce bids — if the property had enough equity to pay off the loan, the owner would have put the home on the market and paid off the bank without going through foreclosure. Since foreclosure auctions start with a minimum bid which includes the balance of the loan, interest, legal costs, and the like, the minimum bid is usually more than the property is worth on the market, – – Read More..
Pre Foreclosure Definition – A pre-foreclosure, by definition, is real estate owned by someone who is in danger of being foreclosed on by the lender, usually because they have fallen behind on their mortgage payments. Many of these properties are “sold short,” at below market value — this means Canadian pre-foreclosure listings are in high demand, since sellers can make good profits buying these properties. How Pre-Foreclosure Works A pre-foreclosure in Canada starts when the homeowner has missed one or more payments and is now considered delinquent or in default on the loan. Pre-foreclosures are sometimes known as Lis Pendens – – Read More..
A non-REO foreclosure, by definition, is a property where the foreclosure process was completed successfully. In a non-REO foreclosure purchase, the buyer is able and willing to pay the full amount which the original owner owes the lender — including the balance of the mortgage, interest, and legal costs. Why Canadian Foreclosures Are Different From US Foreclosures Foreclosures are a legal process where the bank or lender who holds a lien on the property can take ownership of it, or gain the right to sell it, in order to pay off a mortgage which is in default (as well as – – Read More..
A non-judicial foreclosure, by definition, is a foreclosure that does not go through the court (judicial) system. Another term for a non-judicial foreclosure is a Power of Sale. Compared with a traditional judicial foreclosure, a non-judicial foreclosure or Power of Sale proceeds much more quickly. For homeowners facing foreclosure, it’s usually a matter of at least six months before they must leave their homes, and there is some margin of time where they can still save their homes. If they face a non-judicial foreclosure or Power of Sale, they may have a few weeks before they will have to move – – Read More..
A judicial foreclosure, by definition, is a foreclosure where the lender goes through the legal system to obtain a judgement — usually either title to the home or the right to sell the home to recoup the balance of the mortgage and other costs. Normally when people borrow money to purchase a property, the bank has a lien against their property. If they do not make their payments on time, the loan is considered “in default” and the lender may exercise their lien against the home. Normally this happens after several notices are mailed to the homeowner telling them they – – Read More..
An in-substance foreclosure, by definition, is when the bank or lender has already taken possession of the home or property even when no formal foreclosure process may have taken place. An in-substance foreclosure can happen after a deed-in-lieu of foreclosure, when the homeowner agrees to transfer title of the home to the lender in order to satisfy the outstanding mortgage. Why Do Lenders Use An In-Substance Foreclosure? In-substance foreclosures or deeds-in-lieu of foreclosure are a way for both homeowners and lenders to avoid the serious downsides of a foreclosure. Foreclosure proceedings can be a nightmare for lenders and property owners – – Read More..
A friendly foreclosure, by definition, is another term for a deed-in-lieu of foreclosure. This is a process where the homeowner or property owner voluntarily returns the property to the lender, allowing both to avoid the long and drawn-out process of a foreclosure. This option requires approval from the lender, and the homeowner has to leave the property. There are a number of benefits to using a friendly foreclosure. In many cases, the lender will agree to forego any right to a deficiency judgement, which would require you as the borrower to pay any balance left if selling the property does – – Read More..
The most common foreclosure definition in English is something like the following: it is a legal action the lender may take if someone who borrowed money using a mortgage stops paying that mortgage back. Foreclosures allow the lender to either sell off or take possession of the property (after obtaining permission from a court) in order to recoup the money they originally lent out. Important to understand is that the property owner will not automatically lose the property if they are late on a payment or miss one entirely. Lenders, in general, would prefer to avoid foreclosure if possible — – – Read More..
A deed-in-lieu of foreclosure in Canada is one alternative to going through the long, expensive, and painful foreclosure process. A deed-in-lieu of foreclosure, by definition, is when you are otherwise facing foreclosure and agree to voluntarily sign over the deed to your property to the bank. At this point you vacate the home and they are free to sell it off without having to pay court or legal costs to force you out. A deed-in-lieu of foreclosure is not a full foreclosure. As part of this process the lender will agree to forgive any part of the loan that they – – Read More..