Knowing how to save your home from a foreclosure or power of sale is not something that most people are not familiar with. Most people don’t even understand how the find themselves in the position, let alone how to protect it. The foreclosure or power of sale process in Canada is usually started as the result of non payment on your mortgage. Keeping up with mortgage payments can be a challenge when you are out of work or are receiving limited income. Often people will miss payments with the intent on catching them up but fall too far behind and don’t have the means to get back on track.
Once you start missing payments your bank will start imposing back interest payments and fees for missing/late payments. The problem only compounds because once you have missed too many payments you will start incurring legal fees and other excessive costs in relation to the legal process. Costs can pile up quickly and if you don’t bring the mortgage up to date they will evict you from the property and force the sale of your home.
The only way to stop a foreclosure or power of sale is to pay all of the mortgage arrears and penalties up to date or pay the mortgage out in its entirety. While it is never a bad idea to retain council, in the end you still have to leverage the money to pay your current mortgage lender. Your best chance to fix your dilemma and make sure that you don’t lose your house is to speak to an educated mortgage broker who is familiar with the foreclosure and power of sale processes. A knowledgeable mortgage broker will be able to assess your situation and find a way leverage the equity in your home to catch up the arrears payments and make it more affordable so that you don’t fall into the same vicious cycle.
The sad part is that most people wait until it is just too late and they end up incurring tens of thousands of dollars in penalties. Don’t wait, be proactive and consult a mortgage broker the second you have the inclination that you are going to start missing payments. The one thing that every consumer should remember is that the longer you wait the more cost you will incur and the less likely it is that you will be able to get help.
By acting proactively rather than reactively, you can save yourself a lot of money, embarrassment and keep your credit rating in tact. Just because your bank declined to refinance you or make your payments more accommodating does not mean that there are not lenders out there who will approve you. Find an experienced mortgage broker and let them find you a lender who will offer you a rate that is competitive with your existing mortgage and who will use a common sense approach to approving you.