The Foreclosure Process

Stages of Foreclosure:
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Stage 1

The bank issues a statement of claim. This is after you have missed at least three payments on your mortgage and it is questionable as to your ability to service the financing of your home.

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Stage 2

This statement of Claim must be served to the owner of the home. The owner has a 15 day period to file a statement of defense. If this is not filed then next stage will commence.

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Stage 3

The bank will request in this Statement of Claim that the Court order the home to be sold. The range of time granted by the court is dependent on the equity in the home and can vary from one day to one year. The most common redemption period is 6 months or less.

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Stage 4

Next, the bank must file an Order for Sale of the property. This must be accompanied with a property evaluation from an appraisal company. In addition, this step will outline more specifically the dates of the redemption period and how the property is to be sold either by the Court Tender Process or via the MLS at the appraised value.

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Stage 5

The Order for Sale must be served to the owner of the home.

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Stage 6

If the redemption period passes without the owners having the financial capacity to pay the arrears, then the home will be sold.

 
Depending on what stage of the process you are in will determine what can be done to stop your foreclosure and save your credit. There are many different options that can be provided to help you out of your current situation and get back on your feet again.