***Brian had purchased a property in 2010 and has defaulted on his mortgage. After contacting the bank, he was instructed that the bank was in the process of auctioning his home. Shocked and confused, Brian consulted his real estate lawyer in Jamaica who advised him that in these instances the sensible thing to do is to secure a serious buyer and sell the property himself with the permission of the bank.

  Issue

What to do when the bank threatens to foreclose on your home because you defaulted on your mortgage.

 Background

Mortgages, now more than ever are easy to acquire but difficult to maintain. Unfortunately, a lot of people end up losing their homes due to defaulting on their mortgages. To make matters worse when the bank sells forecloses to recover debts, if the property is sold for less than the debt owed then the bank is likely to sue you to recover the balance, adding to your stress.

What was done

A letter was sent by Brian’s Real estate lawyer to the bank to inform them that Brian intends to sell, along with a letter requesting a statement of Brian’s Account. This helped Brian to price his property at a cost that would allow him to repay the bank and have some money left for himself. Once the statement of account was delivered to his real estate lawyer, an undertaking was given to the bank to repay the balance of what Brian owed from the proceeds of sale. Acting on that undertaking Brian’s home was removed from auction thus giving him full control over the price at which he would sell for.

Conclusion

The property was sold and Brian repaid his mortgage and had a few monies left over.