Types of Mortgage Problems and Solutions

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 GVCPS, a Real Estate Investment Company that can help relieve you of your financial stress if you can’t pay mortgage through their Mortgage Take Over Program. Through their Company’s Mortgage Take Over Program, GVCPS can take over your mortgage payments and the property associated with it. Through their Company’s Program, GVCPS provides 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.

GVCPS specializes in mortgage problems and solutions. 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. Contact GVCPS today: 604-812-3718 or www.gvcps.ca

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 GVCPS Regarding Taking Over Your Mortgage Payments and the Property 

GVCPS 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 their Company’s Mortgage Take Over Program, GVCPS provides 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.

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.

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, sell the property yourself or contact GVCPS Inc., a real estate investment company that buy houses for cash.

GVCPS is a local Real Estate Investment Company who are professional residential property buyers that buys property quickly without charging real estate fees or commissions. For more information, contact GVCPS 604-812-3718 or www.gvcps.ca. Depending on your individual situation, GVCPS may be able to preserve any equity in the property, avoid foreclosure and 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 a letter from your lender means, ask your lender or ask a professional mortgage consultant at GVCPS to help you with your questions. For Free consultation contact GVCPS 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 find a solution to your mortgage payment problems. For Free consultation contact GVCPS 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 a or a professional mortgage consultant at GVCPS – it’s important that you understand the consequences of foreclosure if you stop paying your mortgage payments as foreclosure will be inevitable. For Free consultation contact GVCPS 604-812-3718 or www.gvcps.ca
  • Do not do anything to the property that will adversely affect the value of the property.

GVC Property Solutions Inc. (GVCPS), is a well established Real Estate Investment Company that is part of a large network of real estate professionals who specialize in creative and innovative techniques to purchase property from people who need relief from their mortgage or real estate situation for any reason but cannot sell through traditional means.

Along with their affiliated Companies, GVCPS has been operating for 25 years, buying residential properties and commercial multi-family unit apartment buildings. GVCPS’s office is conveniently located in West Vancouver, BC. 

GVCPS buys houses, duplexes, townhomes, condos and multi-family residential development projects that are any price, in any condition and in any location in Vancouver, the Lower Mainland, Fraser Valley, North Vancouver, West Vancouver and Squamish, BC. GVCPS also provides consultation services to real estate investors. For Free consultation contact GVCPS 604-812-3718 or www.gvcps.ca

Other Solutions if You Can’t Pay Your Mortgage:

To stop yourself from going into further debt and to avoid foreclosure, you must take quick action 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.

GVCPS can help you with counseling in regards to your modification of mortgage. Their Company’s goal is to provide you with valuable information if you are trying to obtain a mortgage modification or if you need to stop foreclosure. If you are eligible for a mortgage modification, the modification will make it easier for you to manage your mortgage payments and pay your payments on time to avoid foreclosure. GVCPS can  help you with a mortgage loan modification and their Company can verify if there can be any changes made with your lender in relation to the original terms of your mortgage loan.


What Happens if You Are Facing Mortgage Payment Problems?

If you are having trouble making your mortgage payments each month, defaulting on your mortgage may add to the cost of various fees imposed by your mortgage lender on the amount that you already owe, depending on your mortgage contract.

If you are experiencing mortgage payment problems, know your mortgage contract:

If you are facing mortgage payment problems, ensure that your mortgage lender is abiding by your mortgage contract in regards to charging you late fees, penalty fees and higher interest rates on your mortgage payment arrears.

Legislation intended to protect mortgage holders regarding mortgage default:

Section 8 of the Federal Interest Act is intended to protect property owners against abusive lending practices, while recognizing that generally speaking, parties are entitled to freedom of contract. The prohibition against extra charges on arrears remains in place for loans secured by a mortgage.

Section 8 prohibits the imposition of fines or penalties “reserved or exacted on any arrears of principal or interest secured by mortgage on real property or hypothec on immovables that has the effect of increasing the charge on the arrears beyond the rate of interest payable on principal money not in arrears.”

While the Interest Act provides some protection for consumers with regard to interest and prepayment charges, banks have taken advantage of loopholes and gaps in the law to the detriment of consumers, which has resulted in an unregulated system. In 2010, the federal government’s budget included a promise to bring clarity to the subject of mortgage penalties. Despite the promises made by the federal government in the 2010 budget, still no progress has been made.

Additional considerations apply for consumer mortgage loans due to restrictions on default charges in consumer protection legislation, such as those imposed in British Columbia under section 75 of the Business Practices and Consumer Protection Act.

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 homeowner assistance programs designed to help customers experiencing temporary financial difficulties.
  • Contact GVCPS, a Real Estate Investment Company that 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. Their Company specializes in providing monthly cashflow management solutions to unwanted or unmanageable mortgage payments.

Defaulting on your mortgage can lead to a range of serious consequences. If you are experiencing financial difficulties, before allowing a mortgage payment default to occur, it is a good idea to contact your mortgage lender. If you cannot make your mortgage payments and cannot reach some agreement with your mortgage lender to deal with the situation, seek advice from a Professional Real Estate Consultant at GVCPS in Vancouver, BC. 

GVCPS specializes in mortgage problems and solutions. Their Company can help you protect any equity in the property, help protect your credit and prevent foreclosure.  

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.  Contact GVCPS today: 604-812-3718 or www.gvcps.ca

GVCPS INC. WE BUY HOUSES AND WE ALSO TAKE OVER MORTGAGE PAYMENTS AND THE PROPERTY ASSOCIATED WITH THE MORTGAGE
info@gvcps.ca

Our Company, GVC Property Solutions Inc. (GVCPS), is a well established Real Estate Investment Company that is part of a large network of real estate professionals who specialize in creative and innovative techniques to purchase property from people who need relief from their mortgage or real estate situation for any reason but cannot sell through traditional means.

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