Irrefutably, even the thought of Foreclosure or mortgage can be irksome, dreadful and traumatic as it is an awful process that can make a homeowner even lose possession of his home.
But what leads to this stressful situation?
When the borrower dawdles monthly mortgage payments and if the missed payments continue for a long period of time then the lender gets compelled to initiate the process of Foreclosure.
Foreclosure is the legal process initiated by your lender to take possession of your home and then ultimately sell it to recover the pending amount that you owed them.
Unfortunately, many Canadians find themselves either in the process of giving up titles or in foreclosure every year. As in an attempt to be a homeowner, they take way too much debt which becomes challenging for them to handle which often takes them to a gloomy, ugly and dreary path towards foreclosure.
We can understand unanticipated situations like job loss, severe health ailment, death of a dear one can at times lead to missed mortgage payments so what to do in such a situation?
It is vital to manage and control the issue of foreclosure immediately as delay can lead to the worst effects. The earlier you attempt to get out of it, the better it is.
Initially, try to improve your financial health, by being regular in mortgage payments, improving your credit score, not taking further credit but if you have failed to do so and your foreclosure has been initiated try and speak to financial consultants like MMC to explore options, solutions and strategies that can help you extend your timespan for repayment.
Luckily, there are a few things that can help you avoid foreclosure.
Though standardised banks, lenders will choose not to lend you if you have arrear or pending dues on your current mortgage or are undergoing foreclosure but Private lenders can surely help you get out of the foreclosure.
Getting out of foreclosure generally comprises of three steps, read on to explore this;
1.New Mortgage to Stop Foreclosure.
The first step includes taking a new mortgage from a private lender to pay off the mortgage dues, taxes, legal costs, arrears and other costs. As borrowers have the right to redeem home equity until the home is sold and closes.
2.Refinance with a traditional bank/lender
The next step is refinancing with a traditional bank or lender. As this can help to get back to normal. Most of the time this step comprises repairing the credit score and history.
3.Speak to Mortgage Specialist
It is very essential to discuss your situation with a financial consultant or expert who can help to derive options to consolidate your debt both mortgage and consumer into a new mortgage or even options of mortgage modification to extend some time for repayment. (Short -term relief). Always work towards a resolution with your mortgage specialist.
Remember it is always better to do something to stop the process than giving up and doing nothing!
Foreclosure is certainly not a joyful experience. Home loss can be emotionally crushing and devastating and can leave a massive dent in your financial situation and your credit score and history. Call MMC today as we can help you stay in your home and help you avoid foreclosure!