Wondering what steps are needed in a foreclosure case? In general, the foreclosure process can be divided into five steps:
Missed Mortgage payments: foreclosure always begin with landowners if the borrower (property owner or homeowner) does not pay his mortgage on time.
There are many reasons why a borrower can not afford the payment. This is mainly due to difficulties caused by the following factors: divorce, job loss, medical problem or death.
In case, you find yourself in a situation where you are unable to pay your mortgage. It is advisable for you to explore other possible alternatives as soon as possible to avoid foreclosure.
The whole foreclosure process does cost the lenders a lot of money, if possible they will want to explore other reasonable alternatives to avoid foreclosure.
In some situation, the borrower might intentionally cease paying the debt because the amount of the mortgage is greater than the value for the house or because of he his tired of the house and want to get rid of it.
The main point that brings about foreclosure is that the borrower is unable to meet the terms of the loan I.e they are unable to pay their mortgage.
Public Notice: The second step after missing payments is; the public notice. If the lender has not paid his or her mortgage within 3 to 6 consecutive months. The lending company will file a complaint with the county registrar to inform them, that the borrower has breached his or her mortgage payment.
In most states, it is called Notice of Non-compliance (NOD), while in others; it is called “lis pendens”, a Latin word meaning “ongoing pursuit”.
After the county clerk’s office has been informed, the borrower will be formally informed that he may lose his property, if he continues to default on his mortgage payments.
In some cases, a public notice is placed at the entrance of borrower’s home to inform them that they will soon be evicted from their homes if they do not pay.
If you are at this stage in your foreclosure process, the stage at which you are being threatened with foreclosure. You need an attorney in Ontario as soon as possible.