Understanding Repossession - KWC Property Buyers

Understanding Repossession

Repossession is happening to homeowners across the country. It's a scary experience and one that a homeowner shouldn't approach lightly. If you're falling behind on your Cambridge Ontario property mortgage payments and are teetering closer and closer to repossession, this article is for you. Our Cambridge Ontario real estate buyers have put some information together to help you better understand why repossession takes place and what happens during each stage of the process.

Why Repossession Happens

Your lender has the right to issue repossession proceedings against your property if you fail to make the required payments on a loan. Normally two months of arrears is sufficient for a lender to take action against your property. Believe it or not, lenders will try and come to an arrangement to clear the arrears on your account and avoid taking steps towards repossession.

The Repossession Process

There are some obvious steps taken by lenders during the repossession process. The Cambridge real estate buyers at KWCPB describe them as follows:

Payment reminders: In the beginning, your lender will write letters and/or make telephone calls in order to remind you of your missed payments.
Solicitor's letters: If your arrears remain unpaid for more than four months, you lender will refer your case to a solicitor. Our Cambridge Ontario real estate buyers note that it is at this time that a home owner will be notified that repossession could take place if matters are not settled in a timely manner.
Start of repossession proceedings: Repossession proceeds cannot be taken until your account has been in arrears for more than six months. At this point, the solicitors in charge of your account will bring their case to the courts and a hearing date will be set.
Court Hearing: A number of things can happen during the court hearing. First, the court can adjourn (set a new date for your hearing) or dismiss (our Cambridge Ontario real estate buyers have only seen cases dismissed that have fully paid their outstanding arrears). It is more likely that the judge will rule an Order for Possession (this gives the lender the right to possession of your property after a fixed number of days). At this point, not all hope is lost - you still have time to contact a Cambridge real estate buyer at KWCPB for a quick property sale. The judge can also rule a Suspended Order for Possession, if the seller and lender are able to agree upon a monthly payment in order to eliminate the arrears. If payment is defaulted on, the lender has an immediate right to seek possession by Possession Warrant.
Possession warrants and notice of eviction: This is the final stage, when the lender applies for formal eviction. You will receive a date and time from the court when you must leave.

Don't let the possibility of repossession or eviction ruin your credit score and damage your life. Contact a Kitchener real estate buyer at KWCPB today to learn how a quick property sale can help save you from the repo man.

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