My ex and I are no longer together and the property we own together now stands empty. I am the only one making payments on everything and with the debt I had incurred during our relationship I can no longer afford the property in hopes that it will sell. I have also just found out that we would get considerably less that what the outstanding mortgage is. I would like to know the steps invovled with foreclosure and does this affect my credit rating?
Foreclosure
posted by Questions @
1 Expert Comment:
At May 27, 2010 |
11:58 am
, Bart Goth, Trustee in Bankruptcy Said...
The foreclosure process is quite simple. You simply need to stop making payments and inform the institution holding your mortgage that they need to commence foreclosure.
The company will then sell your property, take the proceeds (less the costs of sale) and apply them to the outstanding balance of the mortgage. Typically the proceeds from the sale are not sufficient to pay the full balance of the mortgage, so the remaining shortfall you are responsible for.
As for the impact on credit, the immediate result of the foreclosure is you will have an R8 listed with the credit bureau for 6 years from the date the debt is paid in full. Now depending on the size of the shortfall this may not be to terrible, but the large the shortfall the more likely you may have to consider the filing of a consumer proposal or potentially a bankruptcy.
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