Best Foreclosure Lawyers in Coquitlam

About Foreclosure Law in Coquitlam, Canada

Foreclosure is a legal process where a lender seeks to recover the balance of a loan from a borrower who has defaulted on their mortgage payments. In Coquitlam, Foreclosure follows the legal framework set out by the province of British Columbia. When a homeowner is unable to keep up with mortgage payments, the lender can apply to the Supreme Court of British Columbia for permission to sell the property to recoup the owed amount. Unlike some parts of the United States, Foreclosure in British Columbia is a court-supervised process, designed to ensure fairness for both lenders and borrowers.

Why You May Need a Lawyer

Navigating Foreclosure laws and proceedings can be complex and stressful. People facing Foreclosure may need a lawyer for several reasons, including:

• Understanding the legal implications of missing mortgage payments
• Responding to court documents or notices from lenders
• Negotiating with lenders or exploring alternatives such as payment plans, refinancing, or selling the home privately
• Ensuring your rights are respected throughout the Foreclosure process
• Verifying the validity of the lender’s claim and the amount owed
• Defending against wrongful or premature Foreclosure
• Dealing with deficiency judgments if the sale of the property does not cover the outstanding debt
• Assisting with the purchase of Foreclosed properties
• Understanding tax and credit consequences resulting from Foreclosure

Local Laws Overview

Foreclosure in Coquitlam is governed by provincial law through the Court Order Enforcement Act of British Columbia, and the process involves the Supreme Court. Here are key aspects relevant to Coquitlam:

• Judicial Foreclosure: Foreclosure in BC must go through the courts. The lender files a Petition and the court oversees every stage. There is generally no power of sale without court involvement.
• Redemption Period: The court typically grants an Order Nisi, setting a redemption period (standard is six months), during which the borrower can repay the debt in full and retain ownership.
• Order Absolute: If the redemption period expires and the debt is not paid, the court can grant an Order Absolute of Foreclosure. This transfers ownership of the property to the lender.
• Conduct of Sale: Often, instead of taking the property, a lender will ask the court for "conduct of sale", allowing them to list the property for sale under court supervision.
• Deficiency Judgments: In some cases, if the Foreclosure sale does not cover the full amount owed, the lender can apply for a deficiency judgment for the balance.
• Rights of Occupants: Borrowers and occupants have protection until the court grants an order for possession or an order absolute.

Frequently Asked Questions

What triggers a Foreclosure process in Coquitlam?

Foreclosure typically begins when a homeowner is in default, meaning they have missed one or more mortgage payments, or have otherwise breached the terms of their mortgage agreement.

Can I stop Foreclosure after the process has started?

Yes. There is usually a redemption period after the initial court hearing where you can pay the missing amounts, legal costs, and bring the mortgage back into good standing, stopping the Foreclosure.

How long does the Foreclosure process take?

The process can take several months, depending on court scheduling and whether the borrower tries to repay or negotiate during the redemption period. Six months is typical for the redemption period, but it can be shortened or extended by the court.

Do I have to leave my home immediately after Foreclosure starts?

No. You are typically allowed to remain in your home during the court process and redemption period, unless the court orders otherwise.

What alternatives exist to Foreclosure?

Alternatives include negotiating a payment plan with your lender, refinancing, arranging for a mortgage assignment, or selling your home on the open market before the court takes control.

Am I guaranteed to lose my home if Foreclosure is started?

Not necessarily. If you repay the outstanding debt, negotiate with your lender, or sell the home before an Order Absolute is granted, you may keep your home or at least mitigate losses.

Does Foreclosure affect my credit rating?

Yes. Foreclosure can have a significant negative impact on your credit rating and may make it more difficult to obtain loans or mortgages in the future.

Can a lender pursue me for any remaining debt after Foreclosure?

Yes. If the sale proceeds do not cover the mortgage debt, lenders can seek a deficiency judgment against you, subject to certain legal limits and exceptions.

What happens if there are multiple mortgages or liens?

All registered mortgage holders and lien claimants must be served notice in the Foreclosure, and priority is determined by registration date. Surplus sale proceeds, if any, go to pay these in order.

Should I hire a lawyer if I am facing Foreclosure?

It is highly advisable. An experienced lawyer can assess your unique situation, explain your rights and options, guide you through court proceedings, and help negotiate with your lender.

Additional Resources

• The Supreme Court of British Columbia - Responsible for Foreclosure proceedings
• Consumer Protection BC - Offers information on debt and consumer rights
• People’s Law School - Public legal education resources about Foreclosure
• Access Pro Bono - Free and low-cost legal advice clinics in British Columbia
• BC Housing - Information and assistance for homeowners in financial difficulty
• Your local legal aid office - For those who qualify for free legal representation

Next Steps

If you are facing possible Foreclosure or have received notice of legal action, it is important to act swiftly. Here are the recommended steps:

• Do not ignore any legal paperwork or communication from your lender
• Gather all mortgage documents, payment records, and correspondence
• Contact a licensed lawyer in Coquitlam who specializes in Foreclosure and real estate law for an initial consultation
• Explore possible alternatives with your lender if you wish to keep your home
• Attend all court hearings or ensure a lawyer represents you in court
• Utilize local and provincial resources for additional information and support
• Take prompt action, as delays can limit your available options

Legal guidance can make a significant difference in protecting your home, credit, and financial future. Early and informed action is the best approach if you find yourself struggling with mortgage payments or facing Foreclosure in Coquitlam.