Mortgage problems and difficulties can affect anyone, regardless of where you live or how much equity you have in your property.
Although interest rates do play a part in creating mortgage problems, more often than not, some of the most common causes of mortgage problems are due to unexpected life events; job loss, prolonged unemployment, illness, injury, divorce and separation.
Mortgage problems can also be caused by how well you manage your finances in general. Here are the types of mortgage problems and solutions.
Mortgage Problems and Solutions:
Mortgage Problem: I can’t pay my mortgage what do I do?
If you can’t pay your mortgage, the best solution to manage your mortgage payment problem is to understand what your options are and what help is available to you. If you can’t pay mortgage, it’s important that you take immediate action to avoid being penalized by your mortgage lender and avoid any potential damage to your credit rating.
1. Contact Your Mortgage Lender Regarding Your Mortgage Payment Problem
The most important thing you can do if you can’t pay mortgage, is to contact your mortgage lender immediately while there is still time to turn your situation around. Your mortgage lender has as much interest as you do in finding an early solution if you can’t pay your mortgage payment because missed payments on your mortgage loan can cause problems for your mortgage lender as well.
Your lender may offer one of several solutions to support a payment recovery plan that may include: temporarily reducing your monthly payments to cover the interest only; deferring payments altogether and adding the unpaid amounts to the loan balance or increasing the length of the loan to lower the amount of the monthly payment. The earlier you make contact with your lender, the more options your lender may have available to resolve your mortgage payment problems. In every case, the options available to you will depend upon your individual financial circumstances.
2. Talk To Your Mortgage Broker
Finding a solution to your financial difficulties requires early intervention and a well-organized plan. Ask your mortgage broker about options that are available to you for managing your current financial situation. Your mortgage broker may be able to assist you by arranging more flexible payment options, particularly if you have paid previous lump sum pre-payments or if you have previously chosen an accelerated payment schedule. Sometimes a debt consolidation loan is advisable and your mortgage broker can arrange a loan that meets your needs. In every case, the options available will depend upon your individual financial circumstances. You may also want to discuss your situation with other related financial professionals, such as your financial planner or accountant.
3. CMHC and Genworth Financial Insured Mortgages
If your mortgage is insured with either CMHC or Genworth, both Insurers offer home owner assistance programs designed to help customers experiencing temporary financial difficulties. Working in partnership with mortgage lenders and mortgage brokers, these programs are available to homeowners at no cost.
CMHC and Genworth Financial offer a variety of temporary alternative options designed to assist home owners to meet their mortgage obligations and keep their homes. For more information on these programs please visit: http://www.genworth.ca/content/genworth/ca/en/services/for_brokers/hoa.html and http://www.cmhc.ca/en/co/co_005.cfm
4. Contact GVCPS Regarding Their Mortgage Take Over Program
GVCPS Inc. is a real estate investment company that buy houses for cash can help relieve you of your financial stress if you can’t pay mortgage through their Mortgage Take Over Program. Through their Mortgage Take Over Program, GVCPS can take over your mortgage payments and the property associated with it.
Through our Mortgage Take Over Program, you are provided with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments along with protecting any equity you may have in the property and protecting your credit.
In most cases, GVCPS will take over the entire mortgage payment as well as all of your other monthly financial obligations regarding the property on your behalf that may include; property taxes, property insurance, monthly strata fees as well as any repair and maintenance costs.
5. Assess Your Current Financial Situation
In order to help yourself, you need to first understand your financial situation. Sit down and create an honest budget based on your current financial situation and goals. Create a budget and stick to it. A budget will help you take control of your money and make sensible decisions on how you spend. It will also give you a financial roadmap to follow and allow you to cut back on your spending. Your budget should include a detailed list of financial obligations including credit cards, loans, household bills and due dates. Also include information about your current income, savings accounts, investments, and any other assets.
6. Sell Your Property
Perhaps you’ve come to the realization that selling your property is the best option given your financial situation. It may be worth listing your house on the market through a realtor or contacting GVCPS Inc., we are residential property buyers that buys property without charging real estate fees or commissions. For more information, call directly 604-812-3718. You may be able to preserve some of the equity you’ve built up and you will not have to deal with the repercussions of a foreclosure, including damage to your credit rating.
What You Should Not Do:
- Do not ignore letters or telephone calls from your mortgage lender. If you are not sure what your lender means ask your lender or ask a professional mortgage consultant at GVCPS to help you with your questions 604-812-3718 or www.gvcps.ca
- Do not stop making payments altogether. If you can’t afford the full repayment: talk to your lender and pay what you can each month. If your lender can not provide you with any solutions regarding your mortgage payment difficulties, contact a professional mortgage consultant at GVCPS to help you with your mortgage payments 604-812-3718 or www.gvcps.ca
- You may be thinking about abandoning your property or sending the keys to your lender. You should not do this without talking to your lender first and understanding the consequences.
- Do not do anything to the property that will adversely affect the value of the property as any repair costs will be deducted from any equity that you may still have.