Ontario Investment Property Foreclosure Lawyer
Many investors and contractors look at properties as a way to make some easy money. Buy a house, fix it up, and flip it a few months later. Or some people look at long-term rentals, such as apartments and condos, as a way to make steady income.
However, these investments do not always work out, especially if there is a mortgage attached to them. If you’re not making as much money as you expected or have gotten behind on bills, your investment property could face foreclosure.
Foreclosure can affect residential and business properties. This can be a scary situation, but the good news is that there are options that can help you keep your property. Learn more by contacting an Ontario investment property foreclosure lawyer from Wadhwani & Shanfeld today.
A loan modification, as the name implies, modifies the terms of the loan so that you can keep the property instead of losing it through foreclosure. It does not pay off your loan in any way; instead, it changes the conditions. There are several ways that a lender may modify a loan. For example, they may reduce the monthly payments, which would extend the mortgage term. They may also reduce the interest rate and eliminate fees and other delinquencies.
A forbearance agreement means you will be allowed to delay mortgage payments for a temporary period of time so you have time to get back on your feet. This agreement may also allow for a temporary reduction in mortgage payments. A forbearance agreement should also include an assurance by the lender that your property will not be subject to foreclosure during this time. Be sure to get this agreement in writing.
A short sale is an alternative to a foreclosure that involves selling the property for less than what is owed. The agreement may vary. The lender might agree to accept the proceeds of the short sale to fully satisfy the lien. In other cases, though, the lender might continue to pursue the borrower for any difference in what is known as a deficiency judgment. This is more likely when the property in question is an investment property.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure gives the deed to the property to the lender, which should release the borrower from the debt entirely. However, if the property value is much less than the debt owed on the mortgage, a lender has the right to pursue the borrower for the difference.
Contact Wadhwani & Shanfeld Today
Houses intended to be investment properties could end up going in the other direction and causing you to go into foreclosure. If you are having trouble keeping up with payments, learn more about your legal rights.
At Wadhwani & Shanfeld, we understand the financial struggles you are facing. Income and market values can change in an instant. Contact our Ontario investment property and foreclosure lawyers to prevent foreclosure. To schedule a consultation, give us a call at (800) 996-9932.