Falling Behind on Mortgage
There are several reasons why a client may fall behind on their mortgage payments. More often than not these are reasons or circumstances that were unexpected or unavoidable. Discussed below are some of these situations
This is the most common reason why people often fall behind on payment of mortgage arrears. When someone loses their job, they lose their primary source of income, part of which they were using to service the mortgage loan. The loss of a job can really inconvenience a person, and it is not uncommon that before they get back on their feet, they have defaulted on their mortgage payments.
Divorce is another cause where someone can fall behind on mortgage payments. The most common situation is where both spouses serviced the mortgage payments when they were together. But, after a divorce only one of the spouses bears the responsibility to pay the mortgage. This puts a huge financial strain on them causing them to default on their payments.
Unexpected bills such as heavy medical bills or disability / WSIB can put a financial strain on a person. When a close family member suddenly falls ill or becomes a victim of an accident, their wellbeing becomes a priority and thus mortgage payments tend to take a back seat. Residents of Chatham behind on mortgage have found themselves in this exact situation.
When you default in payment the first course of action by the lender is normally to notify you of your default by letter asking you to contact them as soon as you can to make payment arrangements. The lender usually wants to avoid foreclosure or power of sale as much as possible because (i) it would be bad business, and (ii) they are not in the business of buying and selling properties! it is time-consuming, expensive, and inconveniencing. Besides, the lender wants to make sure that the mortgage loan is performing profitably.
If this doesn’t yield desired results, then a second notice is issued. This time it may notify the borrower of the continued default, and that power of sale proceedings may be or will be initiated.
It is important for a resident of Chatham behind on mortgage to consider these tips to help them get back on track with their mortgage payments.
1.) Contact Your Mortgage Loan Provider or Servicer
Contact your lender as soon as possible, explain your current situation and let them know that you are ready and willing to get back on track. What most people do not know is that the lender will provide you with several options on how to achieve this. Some of these options include a repayment plan or even the ability to skip payments.
2.) Enlist the Services of an Expert Who Deals in Such Scenarios
Say you cannot manage to keep up the payments anymore, it is important that you act very fast by contacting experts in such matters and they will advise you accordingly. Certain options will be presented to you depending on your personal situation. Some of these include; Refinancing, Selling the home, and making repayment plans.