Are You Facing Mortgage Problems in Abbotsford, BC?
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For thousands of Abbotsford, BC home owners, their monthly mortgage
If you are a homeowner and have fallen behind on your mortgage payments, you are not alone. It is common for home owners in Abbotsford, BC as well as home owners in the Fraser Valley, BC, to face unforeseen financial circumstances or unexpected life events that impact their ability to make their regular monthly mortgage payments.
When you are facing financial difficulties that impact your ability to make your regular mortgage payments, it is important for home owners in Abbotsford and the Fraser Valley, BC, to take quick action. At first, your mortgage lender may tolerate a few late payments, however, when your delinquent mortgage payments turn into missed mortgage payments altogether, a foreclosure action against you will be inevitable.
If you are having Mortgage Problems in Abbotsford, BC – What can you do?
The most important thing is not to ignore your mortgage payment problems or any telephone calls from your mortgage lender. To increase the chance of successfully managing your financial situation through early intervention, contact a Mortgage Problem Solution Provider at the first sign of financial difficulty. Ask the mortgage professional about information on the options available for managing your financial situation and they will help you find solutions with the following tips:
You may request a Loan Modification:
A loan modification is a permanent restructuring of the mortgage where one or more of the terms of a borrower’s loan are changed to provide a more affordable payment. With a loan modification, your lender may agree to do one of more of the following to reduce your monthly payment:
- reduce the interest rate
- convert from a variable interest rate to a fixed interest rate, or
- extend the length of the term of the loan.
Generally, to be eligible for a Loan Modification, you must:
- show that you cannot make your current mortgage payment due to a financial hardship
- complete a trial period to demonstrate you can afford the new monthly amount, and
- provide all required documentation to your lender for evaluation.
Required documentation will likely include:
- a financial statement
- proof of income
- most recent tax returns
- bank statements, and
- a hardship statement.
There are many different loan modification programs available, including proprietary (in-house) loan modifications and for mortgages insured by Canada Mortgage and Housing Corporation (CMHC), CMHC provides mortgage professionals with tools and the flexibility to make timely decisions when working with you to find a solution to your unique financial situation.
If you are currently unable to afford your mortgage payment, and won’t be able to in the near future, a loan modification may be the ideal option to help you avoid foreclosure.
Refinance with a New Loan:
Depending on your financial situation, the best course of action may include obtaining a 2nd mortgage or refinancing your current mortgage with a B-Lender or a new 1st private mortgage lender.
You may be able to find another mortgage lender that will offer you a loan with better terms (such as a fixed rate) that may be more manageable. Review your current loan to determine whether it contains a prepayment penalty and check if refinancing is possible.
Ask for a Forbearance Agreement:
While a loan modification agreement is a permanent solution to unaffordable monthly payments, a forbearance agreement provides short-term relief for borrowers.
With a forbearance agreement, the lender agrees to reduce or suspend mortgage payments for a certain period of time and not to initiate a foreclosure during the forbearance period. In exchange, the borrower must resume the full payment at the end of the forbearance period, plus pay an additional amount to get current on the missed payments, including principal, interest, taxes, and insurance. (The specific terms of a forbearance agreement will vary from lender to lender.)
If a temporary hardship causes you to fall behind in your mortgage payments, a forbearance agreement may allow you to avoid foreclosure until your situation gets better. In some cases, the lender may be able to extend the forbearance period if your hardship is not resolved by the end of the forbearance period to accommodate your situation.
In forbearance agreement, unlike a repayment plan, the lender agrees in advance for you to miss or reduce your payments for a set period of time.
Plan a Repayment Plan with your lender:
If you have missed some of your mortgage payments due to a temporary hardship, a repayment plan may provide a way to catch up once your finances are back in order. A repayment plan is an agreement to spread the past due amount over a specific period of time.
Here is how a repayment plan works:
- The lender spreads your overdue amount over a certain number of months.
- During the repayment period, a portion of the overdue amount is added to each of your regular mortgage payments.
- At the end of the repayment period, you will be current on your mortgage payments and resume paying your normal monthly payment amount.
We can help provide options that lets you pay off the delinquency over a period of time. The length of a repayment plan will vary depending on the amount past due and on how much you can afford to pay each month, among other things. A three- to six-month repayment period is typical.