Defaulting on your mortgage may have serious consequences. If the borrower breaches any terms of the mortgage or misses regular payments, the lender has many firm remedies they may exercise to protect their investment. Making your regular payments on time and keeping within the terms of the loan will spare you potential foreclosure and plenty of grief.
What are mortgage arrears?
As in any contract, your mortgage agreement will outline all the terms and conditions related to your loan, specific to you. You fall into mortgage arrears when you start falling behind on your payments – for example, missing a mortgage payment. Missing mortgage payments go against the terms agreed upon when you initial took out the loan, and is to be avoided as much as possible. Any breach of the terms and conditions by the borrower may trigger the lender to take corrective action.
Why do people fall into mortgage arrears?
Some of the most common reasons for default would be for:
Given the above reasons, one may find themselves in a difficult situation. However, there are also many options for the borrower to consider if they are in default of the mortgage contract.
How do I get out of mortgage arrears?
Some of solutions for those currently behind in mortgage payments include:
Due to the fact that mortgage finance makes up the bulk of real estate transactions, there is a greater likelihood of challenges and problems. Borrowers are faced with high unemployment, failing businesses, times of recession and so many unexpected things in life, which may result in financial turmoil. There are several solutions for the borrower if behind on their mortgage.
Private Mortgage Lenders for Bad Credit
It would be wise to speak with a mortgage broker to get your options laid out for you if you are faced with mortgage arrears and imminent foreclosure. If you have bad credit and are looking for private mortgage lenders, and live in Surrey, Vancouver, Abbotsford, or elsewhere in the Lower Mainland, give us a call today at 604.620.2697. You don’t have to do this alone – let’s discuss your options.
Silver Hill Blog
Jim Horvath is the principal broker and director of Silver Hill Mortgage Corp., arranging private mortgage loans in British Columbia for over 25 years.