RBC fast foreclosure threatens ‘average' Canadians

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A Port-Coquitlam man is facing a “fast foreclosure” by RBC in which the bank will seize the property in 24 hours instead of the standard several months an owner is usually given.

"I made several repayment proposals to take care of the arrears, and the bank is basically playing hardball, and said 'sorry, we're carefully declining your offer,'" Ron Philbrook, who has owned the home for 36 years told the CBC. “"I think [others might be] thinking … 'wow, if this can happen to this fellow, it could very well happen to us.'"

According to CBC, the bank is insisting on the foreclosure despite the fact that he has found a stable job and has made a number of offers to pay off the debt.
"I made several repayment proposals to take care of the arrears, and the bank is basically playing hardball, and said 'sorry, we're carefully declining your offer,'" Philbrook said.

Currently, Philbrook owes $114,000 on his Port Coquitlam condo currently valued at $95,000.

According to the report, RBC applied to the B.C. supreme court to request Philbrook 24 hours to pay before it can be listed for sale. This is contrary to the standard practice of banks giving owners six months before foreclosing.

Since the CBC aired the story the bank has given Philbrook until the end of the month to come up with an $11,000 lump sum payment, which has delayed a court application that was set for June 4.

A bank spokesperson reached out to CBC.

"We are working closely with the client to find a resolution and have taken steps to provide both parties with more time and to review carefully the options available,‎" Ian Colvin wrote.

According to the CBC, the email sent by Colvin did not clarify whether or not RBC was going to continue to seek the 24-hour foreclosure once the case reaches the courts.

Philbrook, however, hasn’t given up yet.

"I'm not going to go down without a fight,” he said. “I'm going to fight until the absolute bitter end."

  • LanceH on 2015-06-05 9:54:36 AM

    Obviously, this is a unique situation, and not a "trend" or harbinger of things to come. Leave it to the Lefty's over at CBC is over-state the situation and blow everything out of proportion!

  • Anthony C. on 2015-06-05 10:52:11 AM

    Someone should tell Mr. Philbrook that he has arrived at "the absolute bitter end"...

  • Jerry Quigley on 2015-06-05 11:15:16 AM

    The very best buyer for that property is Mr Philpot. He is even willing to pay more than it's worth!! The RBC is behaving like the US banks did with mortgagors under water, offering to stay in the home, but the bank with no one at the controls, saying no, we're foreclosing and losing there proverbial shirts! Someone with authority at RBC needs to have a look at this, accept the arrears payment as much as is offered, within reason, and allow the homeowner to carry on with his payments. WIN/WIN.

  • LanceH on 2015-06-05 11:20:15 AM

    Haha! Well put Jerry!

  • Rick Robertson on 2015-06-05 1:21:48 PM

    Don't be too fast to name/blame a lender on this. In BC a lender cannot "Foreclose" on a property without court permission first. "Foreclosure" in BC is not the same as "Court Ordered Sale". Foreclosure is actually a process whereby the lender adds the property to inventory and there typically needs to be a good solid reason for that action such as; the lender, and the court, believe that the borrower may strip the property of fixtures.

    Overall I sense there some mixed messaging within the story as written above.

  • Consistently Disappointed on 2015-06-05 2:04:06 PM

    Bank Bashing at its best, what else does MBN have to write about??????
    It never fails on this site. Even when I havent bothered to read these articles for a quite a while, the first one I finaly decide to read turns out to be a bank bashing article about an unfortunate situation where the instituion is forced to Foreclose on a client........please MBN for the sake of your audience, stop the bashing and start reporting the "NEWS" that is relevant to the industry and its players.

  • Rick (Mortgage Mentor) Robertson on 2015-06-05 2:28:21 PM

    OK Consistently Disappointed, here's some "news" for you. On June 1st the mortgage risk insurers actually had increases to 8 (eight) insurance premium niches.

  • Omer Quenneville on 2015-06-08 11:04:13 AM

    Sounds like the owner exhausted his opportunity to redeem himself. Banks don't do this for fun.

  • Carsten on 2015-06-08 12:33:41 PM

    Mr Philbrook owned the house for 36 years.
    It is worth $ 95,000.00
    He owes $ 114,000.00
    Somehow I feel that we only get part of the story

  • Omer Quenneville on 2015-06-08 12:37:35 PM

    Sounds like he may have had a collateral charge and not a "mortgage".

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