Homeownership Re-Engineering : How You Can Save Your Home

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How You Can Save Your Home

• Homeownership Re-Engineering

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Synopsis

• A Guide to Rent to Own Homes
• How Does Rent To Own Work
• Understand the foreclosure in Canada
• Power of sale homes Myths Debunked
• The Procedure for Foreclosure in Canada

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A Guide to Rent to Own Homes

• If you want to get a rent to own home, contacting
  a rent to own home company will be willing to
  help you out in your quest for a decent home.
  Some companies own homes and they would suggest
  if you want to lease it. A rent t own program
  will then serve as the property owner if you
  choose one of their homes. This way, you will be
  allowed to move into your new home.
• As a renter, you are required to sign a
  guaranteed lease and pay the promised rent on the
  assigned time. The procedure of rental payments
  is similar to a renting an apartment. The
  difference is that you can buy the home later.
• Depending on the rent to own programs and their
  regulations, you might need to pay the rent
  slightly higher than the market rate. All the
  additional payments are put as your home purchase
  payment. If you are to change your mind later, it
  is possible to forfeit your additional amount as
  payments. While there are programs where no
  rental payments are considered as a purchase
  price, you simply live in the house and you get
  to have the first right to buy the house before
  its put up for sale in the market.

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How Does Rent To Own Work

• Lease Contract with Option to Purchase
• This lease entails the occupant pay an option
  fee in lieu of the entitlement to buy a real
  estate at an advanced date. If the occupant does
  exercise that preference, the seller is obligated
  to sell the real estate to the occupant and use
  the option fee towards the purchase amount. If
  the occupant decides not to use that choice, they
  will lose the option money.
• Lease Contract with Purchase Agreement
• Another agreement type is a lease with the
  purchase agreement. In this case, either both
  sides decide on a determined purchase price, or
  come to an understanding that the price of the
  real estate will be set with an appraisal, along
  with the succeeding closing date. Everything is
  decided from the start. Expert real estate
  investors believe that this kind of contract is
  the better preference.

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Understand the foreclosure in Canada

• Theres always a smooth available way out of
  foreclosure. One thing you need to understand
  that the bank does not starts foreclosure just
  after the homeowner misses one payment. The
  foreclosure process can be really expensive and
  the lender avoids getting into it and prefers
  finding a way out of it.
• There is a possibility for planning an
  alternative plan for payment of the mortgage to
  avoid foreclosure. The reason behind foreclosure
  is to recover the losses, so if an alternate
  payment plan is given this will save the losses.
• Another thing that should be understood that in
  many states foreclosure is not in practice.
  Beside forecloses, those provinces consider the
  power of sale as a more feasible option because
  foreclose involves court interventions that
  require time and money. In power of sale, there
  are no such court interventions.

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Power of sale homes Myths Debunked

• The Power of Sale Is Not Time Consuming
• There is a proper structured procedure followed
  during the power sale. It isnt easy at it seems
  so all of those who consider it as a very easy
  and quick process should think about it again.
  There are proper documentation and legalities
  that have to be taken care of and must be
  completed before the property is sold. Each step
  will take the required time and to get a buyer
  who is ready to buy a power sale home also takes
  time, it does not happen overnight.
• Plenty Of Foreclosure Properties Are Available.
• Mortgaging a property in Canada is much tricky,
  there are strict guidelines when it comes to a
  mortgage. These rules and regulation keep the
  rate of defaulters very low resulting in a very
  low rate of foreclosure properties. Properties
  are mortgaged to only those who have the ability
  to pay back the money. But this doesnt mean that
  you wont find a single house in power of sale,
  you will find it but really few as compared to
  other countries.

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Power of sale homes Myths Debunked

• Asking For Home Repairs
• When buying a home that is listed in the power of
  sale, it has to be purchased the way it is. You
  cannot ask for repairs of any damage to the
  property.
• Under Market Value Sale of Property
• It is just a misconception that the house under
  power of sale is sold below the market value. The
  properties of the power of sale are to be listed
  in the MLS system. Along with being listed it
  further have to be appraised by a professional
  and credible appraisal personnel. So the power of
  sale property is sold according to the market
  value and not below it.
• Considering the Agreement Final
• One of the biggest myth about the power of sale
  homes is that people consider it as a fixed deal.
  This means that the sale of the home is confirmed
  at the end of the agreement. Unless it is
  mentioned in the agreement, the lender has the
  authority to withdraw the agreement borrower made
  if he completes his payments before the maturity
  of the agreement.

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The Procedure for Foreclosure in Canada

• First stage
• When the owner of the property misses or fails to
  payback the amount of loan. Missing a single
  payment would not result in foreclosure but if
  several paybacks are missed then it is an
  actionable situation.
• Second stage
• The mortgagee sends a public notice through
  court, this notice is submitted to get the money
  back in a legal manner. This is a notice for the
  homeowner that the lender wants his money back
  and the property can be foreclosed.
• Third Stage
• A grace period is given to the homeowner and this
  period is called pre-foreclosure. In this
  duration, the mortgagee and mortgagor can draft a
  way out of this situation.
• Fourth stage
• If the period of notice is over and the payment
  is not redeemed then a date is set for the
  auction of the property foreclosure in Canada.
  And the property is sold to the bidder with the
  highest bid.

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The End

• For more details, please visit
• https//homeownersoon.com/foreclosure-faq