Mortgage Arrears,
Power of Sale/Foreclosure
Have you fallen behind on your Mortgage or tax payments? Mortgage Arrears can lead to power of sale or foreclosure proceedings initiated by the Mortgage Lenders. Power of Sale is a legal process of taking possession of the house and selling it while Foreclosure allows the lenders to obtain title of the property.
Canadian legal system allows lenders to pursue legal remedies to protect their investment but it also allows borrower a set amount of time to pay off these mortgages. It is important to act as quickly as possible to avoid additional legal costs associated with power of sale/foreclosure. You should communicate with your mortgage lenders and try to negotiate a way out to help you get back on track. This is normally the most cost effective option. However, if this isn’t a solution for you then you should speak to a trusted mortgage company with an experience of dealing with arrears situations.
Things to consider if you have fallen behind on payments…
- Are you able to catch up with your payments?
- Do you have savings or a family member willing to help?
- How much time do you have before lender issues power of sale?
- Has the situation that lead to financial difficulty been resolved?
- Can you continue making the same payment for remainder of the term?
How can Lending Circle help?
We understand that sometimes life can take an unplanned route that leads to financial difficulties resulting in not being able to pay mortgage or tax payments on time. It is crucial that you focus on a long term solution, not a band-aid solution. During the initial consultation, we can review & help you understand which mortgage option makes more sense for your situation. Lending Circle can help you refinance your first mortgage with cash in hand and or interest reserve that provides you with time to get your finances back on track. OR, If your first lender is willing to stay and finish the term as long as mortgage can be brought into good standing, we can explore a home equity solution such as home equity loan, Heloc, or second mortgage, to get you cash in hand. Lending Circle has helped many clients resolve arrears situations & get back on track.
