Foreclosure in B.C.

Default on a mortgage means the lender has the right to claim the full balance owed under the mortgage, plus interest and other costs. Making a fraudulent misrepresentation to obtain the mortgage is one example of a default. The lender can start legal proceedings to take the property or sell it to pay the mortgage debt. This legal process is foreclosure. The first step in a foreclosure is a Demand Letter. 1) Demand Letter. It contains precisely how much is owed. It is made on all of the owners of the property, all of the people who are named in the mortgage and the guarantor if there is one. If the mortgage is not satisfied within the stated time the lender moves to petition. 2) Petition. To start a foreclosure action, a formal application is made, in writing, to the court requesting judicial action. This declaration of facts is a petition. The petition is also served to anyone whose interest may be affected such as the registered owners, tenants, guarantors, and any other mortgage or insurance holders. Included in the petition is a request for an order for sale.

Oklahoma Flip, the Bump, and Value Fraud. In some schemes, the value of the property is artificially overstated to deceive the mortgage lender. This may be done by ‘Flips’, where one or more superficial transfers of title are used to increase the apparent value of a property. ‘Shot gunning’ is to approach multiple lenders simultaneously for loans on one property. A similar tactic is ‘chunking’ where one approaches multiple lenders simultaneously. 'Puffing' is the exaggeration of material facts to increase the perceived value of a property. Collusion is when people act in concert to falsify aspects of a development or a loan application.

Private Mortgage Financing Frauds are schemes where mortgage financing is raised by ‘private offerings’ in which investors are promised high returns on real estate properties or condo projects.