I have received an email from a home owner in the Okanagan last week. She and her husband are in financial trouble and the bank has recently started foreclosure proceedings on their home because they have missed few mortgage payments. I was surprised to learn that the family was getting ready to move out because they believed this would be the right thing to do.

Few days later a home owner from Campbell River has called to ask a question. It turned out that he has left his house a year ago and moved into a rental property while the bank found a buyer for the house only in the last few weeks. We have all heard stories about how homeowners in the US walking away from their homes. But, is this the right move for a BC homeowner who faces foreclosure. Absolutely not!

There is a lot about foreclosures in the media nowadays but most of the stories relate to the US. What is true in the US or even in other provinces of Canada is often not true in BC. Before you take any further action, read this important article and learn about the 5 foreclosure myths that are simply not true in BC.

Myth #1 – The bank reps can show up at my door and take my home

Truth: The foreclosure process in British Columbia is controlled by the BC Supreme Court. This means that each step of the foreclosure process has to be approved by the Supreme Court. Nobody can simply come and kick you out because you have missed few mortgage payments.

Myth #2 – If I my property being foreclosed on I should move out

Truth: There are several reasons why you should stay in the property until it is actually sold or the foreclosure is being stopped:

• Yes, it is true that you are not paying the mortgage, but the mortgage payments are added to your bill. Sometime in the future we will be held accountable to pay back. No point to move out and rent another place, it is like making double payments.
• In fact the bank prefers the property remain occupied. Vacant property has higher risk associated with it; insurance fees are higher.
• Vacant property is often harder to sell. If you stay and take a reasonable effort to make it look good the eventual purchase price could be higher which will benefit you directly.

Myth #3 – The owner can no longer sell the property if the foreclosure proceeding have started

Truth: As long as you are able to sell the house and have enough funds to pay back the loans you can sell your house and stop the foreclosure process. The sooner you sell the house, the less legal fees you will have to pay.

Myth#4 – Not cooperating with the bank or professionals hired by the bank will delay the foreclosure process.

Truth: Because the foreclosure process in BC is already very long, not cooperating will hardly ever impact the amount of time you will have. On the other hand cooperating with the lender has it benefits:-

• When it comes to selling the property, if you support the realtor by preparing the property for the showings, the purchase price is lily to be higher and may end with either more money in your pocket or at least less debt.
• Sometimes the bank’s lawyer has to ask the court to issue an order that helps them continue with the foreclosure proceedings. ( e.g. If they have to enforce showing to potential buyers because the owner won’t let the real estate agent in ). This results in additional legal costs that are charged back to the home owner.

Myth# 5 – The bank’s lawyer won’t talk to me.

Truth: You will be surprised how helpful the bank’s lawyer could be if you ask legitimate answers and show a genuine interest in solving the problem.

Bottom line, in BC the foreclosure process is unique and as a BC home owner you are protected by the legal system. You do have some time to fix the problem and there is no risk you will be thrown out of your your home tomorrow. But, please remember that it is in your best interest to stop the foreclosure process as quick as possible. If you feel that you are being treated unfairly by the lender, you should get legal advice. Otherwise, you should focus your efforts on stopping the foreclosure by finding a reasonable solution.

Disclaimer: - The content of this article is for informational purposes. It is based on my experience talking to homeowners and visiting the court. I am not a solicitor. I focus on providing practical solutions that may help BC Home Owners to avoid or stop foreclosure.

This article was written by Michelle Castillo, a BC foreclosure expert providing BC homeowners with information and creative solutions to stop foreclosure. To get FREE consultation visit http://www.foreclosurehelpbc.com today.