While the process is meant to be convenient for you to own your own property, some people can’t make their mortgage payments. People who have fallen behind with their payments inevitably face foreclosure and possible bankruptcy.
If you are having trouble making your payments, contact your mortgage provider to discuss your options as soon as you can. The longer you wait to talk to your lender to work towards a solution, the fewer options you will have. Many mortgage providers are expanding the options available to mortgage borrowers who are having problems making their mortgage payments – it’s worth calling your mortgage provider even if your request has been turned down before.
Mortgages are typically long term loans and until you pay off your mortgage in full, you need to renew the outstanding balance for the next term of your mortgage when your current mortgage term reaches its maturity date. Your mortgage lender will not renew your mortgage term if you have not been making your mortgage payments or if you currently have fallen behind on your mortgage payments.
If you’re having problems paying your mortgage, you must take action quickly to avoid foreclosure, possibly falling into debt and damaging your credit.
“Help, I have no equity or I have negative equity”
If the market value of the property has fallen below the outstanding amount of your mortgage balance, then you are underwater. Depending on the decrease in value of the property since the purchase, the property will also have no equity or negative equity.
If you have found yourself in a situation where you can’t pay your mortgage, there is help available through Mortgage Problem Solution Providers. They will help you speak to your lender in regards to finding a solution through a modification of mortgage, a forbearance agreement, a refinance or finding you a new mortgage lender. If you are underwater with your mortgage, in some cases, you can still get a new mortgage at a more affordable interest rate with the help of Mortgage Problem Solution Providers.
If a borrower with a $500.000.00 mortgage debt sees their home value decrease to a market value of $475,000.00, the mortgage is considered to be an underwater mortgage. If the borrower had paid $50,000.00 of the principal on their mortgage loan resulting in a principal balance of $450,000.00 then they are still considered to have $25,000 in positive equity that may be utilized in a home equity loan.
“Help, I’m having a problem making my payments”
If you’re having a problem making your payments, Canadian Mortgage and Housing Corporation (CMHC) has a variety of default management tools which can be used to effectively manage many loan default situations. CMHC is also willing to consider other alternatives proposed by the mortgage lender to resolve or avoid mortgage payment default. CMHC’s Claims and Default Management Team is available to assist Approved Mortgage Lenders at anytime, from early delinquency to filing a mortgage insurance claim and CMHC has the expertise to help lenders manage unusual or complex accounts.
CMHC will not directly give money to people to make their mortgage payments. Instead, the Government may ask a distributing organization or Mortgage problem solution provider companies like GVCPS Inc., a real estate investment company to provide mortgage payment solutions to the mortgage borrower. CMHC can help banks and other mortgage lenders manage their residential mortgage lending business. When a borrower default occurs, CMHC works with your mortgage lender to help manage your mortgage lender’s risk of delinquent mortgages and GVCPS Inc., takes over the mortgage borrower’s mortgage payments.
If you are having difficulty paying your mortgage payments, contact your mortgage lender to discuss the options for an extension of repaying your missed mortgage payments.
“Help, I’m 2 payments behind”
If you are falling behind with your mortgage payments, a modification of your mortgage may be available. A modification of your mortgage is generally used when the mortgage borrower is not in a position to adhere to the original mortgage terms agreed to with the lender, however, it can also be used to pay off your mortgage faster by making higher monthly payments.
The common modifications that can be made to your mortgage agreement are:
- The monthly payments and the loan period can be adjusted to reflect changes in your financial situation
- The interest can be modified from an adjustable rate to a fixed rate
- Penalties can be waived
The Mortgage problem solution provider companies can help you with a modification of your mortgage. Mortgage loan modification can save you from facing foreclosure, which is inescapable if you do not keep up with your mortgage payments. You may request your lender to change the terms, like reducing the size of monthly payments to align it with the change in your income, which in turn would also mean an extension of the total repayment period.
If you’re lucky, your mortgage lender may even allow you to suspend payments for some time. Such a measure is aimed at giving you time to get out of your financial difficulties and the payments are resumed at an agreed upon later date. Once you start paying the mortgage lender again, you may ask for an extension of the repayment period or make larger repayments so that the mortgage can be brought back on schedule.
“Help, I’m facing foreclosure”
If you fall for behind with your mortgage payments and you have received a demand letter from your mortgage lender”s lawyer, there are still a number of strategies to help you stop foreclosure, manage your debt load and help renegotiate any of your complex financial entanglements.
Mortgage lenders want homeowners to pay their mortgages. The foreclosure process can be time consuming and costly to your mortgage lender so they have a vested interested in helping a client through a financial crisis. There may be an opportunity to renegotiate the mortgage over a longer period of time, or at a lower interest rate, or for you to pay a smaller monthly amount for a short period if you’ve had employment difficulties.
The most important step is to contact the mortgage problem solution provider company immediately and explain why you’re having a problem making your payments. In some cases, the foreclosure process might even be stopped by some mortgage lenders when back payments, interest and legal charges are repaid in full by the defaulting borrower. There are many repayment scenarios and this is why it is so important to speak to your lender immediately about your financial problems.
When unforeseen financial circumstances impact your ability to make regular mortgage payments, it’s important for you to take quick action. With early intervention, cooperation, and a well executed plan, you can work together with your mortgage problem solution provider to find a solution to your financial difficulties. Contact GVCPS Inc., a mortgage problem solution provider with 25 years of experience helping people who are facing difficulties paying their mortgage. GVCPS Inc. can help you by protecting any equity you may have in the property as well as help you protect your credit. Contact GVCPS Inc. 604-812-3718 or firstname.lastname@example.org.