Financial worries often arrive without warning. While you had the situation under control so recently, you’re now struggling with creditors trying to empty what’s left of your pockets. It can be tempting to press the panic button and make decisions on the stroke of emotion. However, it is important to stay calm because there are solutions for these situations.

As such, if you have received a 60-day notice from your bank indicating a large default on your mortgage, a private lender may have the solution to your problem. People working in the private lending sector often specialize in lending to people who have been denied funding by the bank or who need a solution more suited to their particular needs. Here is why it is advantageous to do business with a private lender if your financial institution sent you this famous 60-day notice!

What is the 60-day notice?

What is the 60-day notice?

Before explaining what makes private lending the option of choice in a 60-day notice situation, it is important to explain the principle itself! This notice is in fact a legal requirement that every mortgagee must issue before exercising his right. This notice must first be published in the Land Registry in order to be known and enforceable against third parties, and must contain a certain amount of information.

Among them, the notice must indicate the defaults of execution of the debtor, the fact of not making his mortgage payments, asking him to correct the situation within 60 days. Failing to comply with this notice, the creditor will be entitled to ask the debtor to abandon the mortgaged property. It is with the help of the services of a bailiff that the debtor will force the execution of his right. He will therefore obtain a judgment allowing him to seize the mortgaged property.

In addition, the 60-day notice will also indicate an outstanding amount owing by the debtor to its creditor. In order to prevent the latter from exercising his right of seizure, the debtor must repay this amount. This notice applies not only to a bank, but also to any person who holds a mortgage interest in property owned by another person. In the case of moveable property, however, the deadline is 20 days. Thus, whether it is a private lender or a bank, no mortgage right can be exercised without this 60-day notice.

In addition, the law requires 60 days’ notice to contain certain information. If you received one, check to see if everything is on this list:

-Your name and address

-A description of the mortgage contract

-A proof of the lack of payment

-The mortgage remedy that the creditor intends to exercise (Taking payment or sale under judicial control)

-The request to abandon the property for the benefit of the creditor

-The notice period (60 days for a real estate)

-The debtor’s right to repay the amount due before the mortgage is exercised by the creditor.

Upon receiving such notice, it may be wise to hire a real estate lawyer to advise you on the best course of action.

In addition, it is crucial that you never sign an act of voluntary abandonment of your property before consulting an expert and before the expiry of the 60-day period. This would only bring you disadvantages that would aggravate your already precarious situation.

What options are available to you upon the arrival of such notice?

To avoid the worst, let Bye Bye the Debts find a private lender!

There is no point in pressing the panic button again. You are not the first, and certainly not the last person to receive 60 days’ notice from your mortgagee. That said, you need to act quickly, because time is running out. The simplest option is obviously to contact your creditor to pay the amount due to him. It is certain that if you are receiving such notice, you may not have the funds to pay this amount.

So, you will be forced to turn to private lenders who will be able to offer you a mortgage. They are able to give you a loan up to 75% of the value of your home or mortgaged property, which should be enough to pay your outstanding amount. This is one of the main advantages of doing business with private lenders instead of banks; they are able to accommodate you when the banks let you down.

If you do not want to buy a second loan, you can still sell your real estate property to pay off your creditor before the creditor seizes it for sale. This is a very complex process, with everyone losing out.

You can also take the lead on a possible seizure by signing what is called a voluntary surrender act. You will therefore sell your property to the bank before it takes it by force.

You can always hire a lawyer! Indeed, it is possible, through a lawyer, to challenge the 60-day notice in court! The lawyer will be able to discuss the different aspects of the notice in an attempt to bring it down.

Expert lawyers in the field may also attempt to negotiate with your creditors on your own behalf. If this was not successful, a lawyer could always consult licensed insolvency trustees to make proposals to your mortgagee to avoid his right to foreclose.

Your lawyer can even work with private lenders to find a solution that will benefit you by avoiding paying too much in interest rates. There are also real estate firms that know about financing methods to avoid 60-day notice.

What happens if the delay elapses without you finding a solution?

What happens if the delay elapses without you finding a solution?

If you allow the time to pass without having taken out a loan from a private lender or without paying the fees otherwise, your creditor will exercise his or her mortgage remedy in one of two ways provided for by law. In both cases, the outcome is largely unfavorable to an alternative settlement. Here are the two actions your creditor could take against you.

The taking in payment: This recourse that will exert your creditor will allow him to become owner of your property which will take in payment of your debt. It is necessary to have 60 days’ notice prior to exercising this right, and this process will only be completed after obtaining a judgment from the Court.

However, if the debtor in default of payment decides to sign a voluntary surrender act, the bank or the mortgagee will become the owner of the property at the time this act is published in the land register. This published act will serve as title deed for the bank.

But what effects causes the taking in payment? A payment makes the creditor the owner of the property, but it also has the effect of clearing the debt of the debtor. The property now belongs to the debtor as a total repayment of the debt. The bank could not return against its debtor to demand an additional sum as payment.

Selling under the control of justice: This mortgage remedy exercised by the creditor is a way to be reimbursed by selling the mortgaged property. Just like taking in payment, the intention to sell under judicial control must be published in the Land Registry. There are three types of possible sale in the area of ​​mortgage remedies.

  • The auction : For such a sale to take place, it will be necessary to apply to the court for a judge to set the terms of the sale, its place, date and time and set the starting price of the auction based on its evaluation price.
  • The sale by tender : Just like the auction, it is a judge of the Court who will fix the specific operation of the sale by tender. He will decide whether it will be published in newspapers for the benefit of the general public, or whether it will be by invitation only.
  • Over-the-counter sales : Once again, the mortgagee must apply to the court to designate a person responsible for the sale by mutual agreement and the asking price. The judge will decide this price by considering the valuations and all the indices that he judges relevant to the determination of the amount of the sale.

So you understand that nothing good happens leaving the 60-day period without trying to find a solution. By letting your creditors seize you to sell your property, you are depriving yourself of debt settlement methods that are very effective in mortgage matters.

Even if you had to take out a second mortgage with a private lender, you would still keep your property and your financial health would be better off. It is therefore very important, before signing an act of abandonment, to explore all the options available to you in the private sector with a lender exercising in this area!

Why should you opt for a private lender?

Why should you opt for a private lender?

To ask the question is to answer it somehow! Private lenders often agree to lend a helping hand in times when banks drop you one after the other. In considering your file and your financial history, private lenders do not consider the same aspects as banks. For example, while the bank is adamant that your credit rating is good, private lenders, for their part, see it as a second-rate index.

This is why many people resort to private loans in their time of need, because they are more inclined to lend money to people with a financial back-and-forth. In a case of 60 days notice, you can hardly be in a more precarious situation, so it will be almost impossible for you to get financing from a bank.

This is where the flexible criteria of private lenders comes in. By doing business with them, you will be able to keep your home and avoid getting caught. In addition, the interest rates of most private lenders are in the 10 to 12% for a first mortgage and in the 12 to 15% for second mortgages. So there is no reason to lose your house in vain!

To avoid the worst, let Bye Bye the Debts find a private lender!

To avoid the worst, let Bye Bye the Debts find a private lender!

Losing your house because of money problems is the last thing you want to live with when you have dependents. Being kicked out of one’s own home is a humiliating experience that no one should have to live. Luckily, there are effective solutions to remedy a 60-day notice.

Many private lenders know ways to get financing at competitive interest rates that will prevent the worst from happening – foreclosure.

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