Behind On Your Mortgage Payments?
March 15, 2024 | Posted by: Keith Leighton
Behind On Your Mortgage Payments?
With the cost of living rising dramatically, many are finding it difficult to make ends meet. Gas and grocery bills are rising, home prices and rents are skyrocketing, and interest rates are rising. Combine that with a costly unforeseen event, job loss or temporary layoff, and outstanding payments can quickly pile up. While no one wants to find themselves in this stressful situation, there are some solutions. Let's explore them.
- Contact your lender: The first and most important step is to communicate with your lender as soon as you realize you're having difficulty making payments. They may have options available to help you, such as temporary payment deferral, loan modification, or restructuring your loan.
- Explore government assistance programs: Canada offers various government programs designed to assist homeowners facing financial hardship. For example, the Canada Mortgage and Housing Corporation (CMHC) offers Mortgage Payment Assistance, which provides temporary financial assistance to eligible homeowners. Check if you qualify for such programs and apply accordingly.
- Review your budget: Take a close look at your budget to identify areas where you can cut expenses or increase income to free up funds for mortgage payments. Prioritize essential expenses and consider making temporary sacrifices to stay on top of your mortgage.
- Seek financial counseling: Non-profit credit counseling agencies can provide you with personalized advice and assistance in managing your finances. They can help you create a budget, explore debt consolidation options, and negotiate with your lender.
- Consider refinancing or loan modification: Depending on your financial situation, you may be able to refinance your mortgage to lower your monthly payments or negotiate a loan modification with your lender. Be sure to weigh the pros and cons and understand the long-term implications of any changes to your loan terms.
- Look into selling or renting out your property: If you're unable to afford your mortgage payments and other options are not feasible, selling your property or renting it out may be necessary to avoid foreclosure and mitigate financial losses. Be sure to consult with a real estate professional to explore your options.
- Understand foreclosure laws: Familiarize yourself with the foreclosure laws and procedures in your province or territory. While it's best to avoid foreclosure if possible, knowing your rights and options can help you navigate the process if it becomes necessary.
- Seek legal advice if necessary: If you're facing foreclosure or are unsure of your rights and options, consider consulting with a real estate attorney who can provide legal advice tailored to your situation.
Remember, taking proactive steps to address your mortgage struggles can help you avoid more serious financial consequences down the line and eliminate much of this stress. Contact your DLC Ideal Mortgage expert for a consultation to help you, free of charge in most cases!
