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 such as; job loss, prolonged unemployment, illness, injury, divorce and separation. Mortgage problems can also be caused by how well you manage your finances in general. Below are common types of mortgage problems and solutions.
Mortgage Problems and Solutions:
Mortgage Problem: I can’t pay my mortgage what do I do?
- 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.
- 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.
- 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.
- Contact our Company, GVCPS. We are a Real Estate Investment Company that can help relieve you of your financial stress if you can’t pay mortgage through our Mortgage Take Over Program. Through our Company’s Mortgage Take Over Program, we can take over your mortgage payments and the house, townhome or condo associated with the mortgage. We provide you 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.
We specialize in mortgage problems and solutions. In most cases, we 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. Contact us for more information. Office: 604-812-3718 or Email: email@example.com
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 contact your lender to find a solution, 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.
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. In some situations, a debt consolidation loan is advisable and your mortgage broker can arrange a loan that meets your needs. In every case, the options available to you 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.
CMHC and Genworth Financial Insured Mortgages
If your mortgage is insured with either CMHC or Genworth, both Insurers offer assistance programs designed to help customers experiencing temporary financial difficulties. Working in partnership with mortgage lenders and mortgage brokers, these programs are available to you at no cost.
CMHC and Genworth Financial offer a variety of temporary alternative options designed to assist mortgage holders to meet their mortgage obligations and keep their mortgage in good standing. 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
Contact our Company, GVCPS Regarding Taking Over Your Mortgage Payments and the Property
We can help relieve you of your financial stress if you can’t pay your mortgage payments through our Mortgage Take Over Program, We provide you with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments. Depending on your individual situation, we may be able to preserve any equity that you may have in the property, help you avoid foreclosure and damage to your credit rating.
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 all of your financial obligations including credit cards, loans, household bills and their due dates. Also include information about your current income, savings accounts, investments and any other assets.
Sell Your Property
Perhaps you have come to the realization that selling your property is the best option given your financial situation. You can list the property on the market through a realtor or sell the property yourself.
What You Should Not Do:
- Do not ignore letters or telephone calls from your mortgage lender. If you are not sure what a letter from your lender means, ask your lender or one of our real estate consultants to help you with your questions. Office: 604-812-3718 or Email: firstname.lastname@example.org
- Do not stop making payments altogether. If you can’t afford the full repayment, talk to your lender.. If your lender can not provide you with any solutions regarding your mortgage payment difficulties, contact one of our real estate consultants to help you find a solution to your mortgage payment problems.
- 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 or one of our real estate consultants – it’s important that you understand the consequences of foreclosure if you stop paying your mortgage payments.
- Do not do anything to the property that will adversely affect the value of the property.
Other Solutions if You Can’t Pay Your Mortgage:
If you are having problems paying your mortgage, contact your mortgage lender to inquire if you are eligible for a loan modification in regards to your mortgage.
If You Are Eligible, Your Lender May Modify Your Mortgage Loan By:
- Adjusting the monthly payments and the mortgage loan period to reflect changes in your financial situation
- Modifying the interest rate from an adjustable rate to a fixed rate
- Waiving penalties
What is the Purpose of Modification of Mortgage? The purpose is to bring your monthly mortgage payment down to a level that you can pay consistently, help you avoid foreclosure and help you protect your credit from being further damaged from late mortgage payments.
Negotiations With Your Mortgage Lender:
Most lenders would rather negotiate a modification of mortgage with you than foreclosing on the property, however, not all lenders will immediately agree to a mortgage loan modification and you will have to convince your lender through credible evidence that you will be able to adhere to the modified terms.
Our Company, GVCPS, has been operating for 25 years, buying residential properties. We buy houses, duplexes, townhomes and condos that are in any situation, in any price range, in any condition and in any location in Vancouver, BC, the Lower Mainland and the Fraser Valley, BC.