When you fall behind on your mortgage payments on your Calgary home, it can feel like you’re drowning in debt.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in Calgary and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Calgary have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Calgary! 4 Things You Can Do To Help Your Situation
This is usually the tool of last resort, and will seriously affect your credit for up to 7 years. However, if you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford.
2. Negotiate with your bank:
Lots of lenders routinely offer some level of assistance. You have to work hard at it, but you might be able to get your interest rate reduced or a temporary reduction in your payment.
Most of the time, lenders will want to steer you to refinance your loan – but by the time you’re a few payments behind, you probably don’t qualify for a reduction in interest rate.
You have to work really hard to negotiate with a bank. Usually, it takes lots of calls and the patience of a saint to get through the bureaucracy. Never, ever act rude. Ask for help from everyone you speak with, but don’t sound desperate. Explain your situation, offer supporting documents, and reassure the bank that you want to live in your home for the long term.
If you’re in need of a temporary fix and want to stay in your home, most banks can be forgiving. Sometimes they’ll be willing to add a few months of payments back onto the primary balance of your loan. It’s all dollars and cents to them, so remind them that you need their help to give them a lot more money in the long run. If they have to sell your house at a foreclosure auction, they’ll take a huge loss.
That sounds obvious, but for some reason, bankers seem to forget it when saying no to someone in need of help.
3. Borrow money from a private investor:
If you’re behind on your payments and need to sell fast, we can help.
In certain circumstances, we may even be able to help you stay in your home.
We work with homeowners in Calgary to find solutions to foreclosure problems.
We’ll let you know how we can help.
4. Sell the property:
At the end of the day the lender is looking for money, so perhaps the answer is to sell your house quickly and rent for a while. There is nothing wrong with taking a step back to regroup and rebuild, life is a series of peaks and valleys.
“But I don’t have any equity…or very little! I can’t even afford the Realtor commissions. Who will buy my house??” We hear this all the time. Most people think they are doomed to bankruptcy at this stage but you’re not. We can offer creative purchasing strategies to help you get out of the property and stop the foreclosure process before it escalates further. Give us a call so that we can listen, understand and offer a solution.