Understanding Foreclosures – How We Can Help

We want to talk to you about an uncomfortable topic. With the economic downturn in Alberta’s economy, there are individuals out there who prey upon consumers facing foreclosure.

What is foreclosure, you ask? Foreclosure is the legal step, that a lender takes, to recover arrears and principal on a mortgage loan that is in default. The most common default under a mortgage is the non-payment of regular mortgage payments. Legally, the foreclosure process can be started after only one missed payment. Other types of default include, allowing damage to the property, failing to make tax payments, failing to insure the property, failing to make condo fee payments, etc.

Foreclosure fraudsters, as I call them, are unlicensed real estate agents, unlicensed mortgage brokers, and unlicensed property management companies that say they can help you stop the foreclosure. We see all kinds of gimmicks posted out there to the public consumer, in hopes that a desperate home owner will call. For example, we’ve seen one just now online, so innocent sounding, “Stop Foreclosure Now…We pay cash today for your home”. It sounds pretty enticing, doesn’t it?

The important question to ALWAYS ask is, “are you a licensed mortgage broker, licensed real estate agent, or licensed property management company in Alberta”? These fraudsters are not licensed to deal in real estate sales, mortgages, or property management. They are not governed by any laws and you end up giving them money and owing even more after all is said and done. Licensed real estate agents, mortgage brokers, and property management companies are licensed and governed by The Real Estate Council of Alberta, that follows a strict code of ethics and regulations, to ensure the consumer’s best interests are first priority.

The bottom line is, if you find yourself in a situation where you’re facing foreclosure, you should always phone your lender right away, even before you miss that first payment. They will generally be able to work with you and figure something out. If that is not the case your 2nd call should be to a licensed real estate agent for advice.

If you have any questions or are facing foreclosure, we would be happy to give you good advice..we can help. You can reach The Real Estate REPs Group with RE/MAX Realty Horizon at 587-316-2000 or reps.remax@gmail.com