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If you have missed paying your mortgage payments and haven’t made other arrangements with your bank, chances are pretty good that your bank’s next step will be to start power of sale proceedings against your home.
Before that happens, there are steps you can take to try to prevent it:
- As soon as you realize you might have to miss a payment, contact your bank. If your financial situation is temporary, you may be able to defer payments or make interest-only payments for a short time. It’s expensive and time-consuming for your lender to realize on your home, and chances are good that they’ll be willing to work with you to prevent it if possible.
- Understand that missed mortgage payments (or any payments, for that matter) are usually a sign of deeper financial trouble. In most cases, alternative payment arrangements with your bank won’t be enough to solve the underlying problem. If you’re unable to meet your payments as they come due, you need to take further—and immediate—action. A licensed trustee can discuss all of your options with you, including the possibility of credit counselling, filing a consumer proposal, or declaring bankruptcy, and then help you choose what is best for your situation.
- While declaring bankruptcy cannot prevent a sale action, it can potentially free up enough income for you to be able to meet your mortgage payments so that you can keep your home. You’ll need to discuss this with your trustee to make sure it’s within your budget
If your bank has already begun power of sale proceedings, it is unlikely they will stop the proceedings unless you repay the mortgage in full. At the very least, you’ll need to pay any arrears (including interest and legal costs) before a revised payment schedule will even be considered. Again, your best plan is to contact a licensed trustee, who will be able to advise you on your options.
To find out more about how you can prevent foreclosure from happening (or deal with it if it already has), call today for a free, no-obligation consultation with one of our insolvency experts: in Ottawa call 613-237-5555; out of town, call toll-free 1-800-517-9926 or book online.