How to Stop Foreclosure Beginning with Dealing with Mortgage Arrears

Are you finding yourself struggling with your monthly bills? Are you worried that there is a chance that you may fall behind or default on your mortgage payments? Do not ignore these concerns. Dealing with mortgage arrears and learning how to stop foreclosure before it happens is very important. 

There are ways to stop foreclosure and deal with mortgage arrears before they happen. To avoid losing your home through foreclosure due to defaulted mortgage payments, it is crucial to devise a plan to get your finances back on track. There are several options available to you, but some are definitely better than others!

When you are threatened with the fact that you may be unable to pay your monthly bills and mortgage arrears and foreclosure are looming overhead, it is first essential to examine why? The high cost of living coupled with high credit card or personal debt can be detrimental. A great way to fix this is to decrease your debt. But how can this be achieved?

Currently there are countless companies out there offering ways for you to reduce the amount of debt you owe or reduce your monthly debt payments. However, these usually come in the form of debt consolidation loans and consumer proposal plans that, although disguised to help you, actually carry with them devastating impacts for your credit. Avoiding them at all costs is a really good idea.

Instead, working with your mortgage broker to stop foreclosure and avoid mortgage arrears is much more effective. By using the equity in your home and taking on a second mortgage, you can pay off your debt and avoid foreclosure by making your monthly payments more manageable. This option will help you keep your credit in check and ultimately saves you thousands in interest versus trying to continue the monthly payments that were bogging you down in the first place!

What if you have already gone into arrears on your mortgage? Your options may be greatly reduced. Often creditors are less willing to approve applications for funds if mortgage payments are in arrears. Since most lenders will only offer financing if your mortgage payments have been made in full, your only choices may rest with equity only financing. This means that lenders use the equity in your home – and this means that you will need to have a bit more equity established in order to qualify.

Working with your mortgage broker once your mortgage payments are in arrears is a must in order to stop foreclosure.  They will be able to help you develop strategies to firstly, pay off the existing payments owed, and secondly to build a financial budget to allow you to maintain your current bills. This will help you stop foreclosure and avoid going into arrears on your mortgage in the future.

If you find yourself facing mortgage arrears and the potential foreclosure of your home and want more information about how to stop it and bring your mortgage payments back in check, please contact Paul  Mangion at The Mortgage Centre by calling 416 204 0156 or visit www.themortgagecentretoronto.com

Property Tax in Canada and What to Do If You Have a Property Tax Lien on Your Home

Have you found yourself in the uncomfortable position of having a property tax lien placed on your home because you have been unable to pay your property tax? Are you asking yourself what to do if you have a property tax lien on your home? This can be an inconvenient occurrence, but it is not the end of the world.

Property tax in Canada is a mandatory requirement, and there are consequences to be faced if you default on your taxes. One of these consequences is a property lien on your home.

So what is a lien? A lien is a claim on an item of your property (in this case, your house) that assures the settlement of a debt. What is a property tax lien? A property tax lien is a claim on your home that ensures payment of the debts owed to the Canada Revenue Agency (CRA) for unpaid property taxes.

What does this mean? It usually means that the balance owed becomes a forced payment that comes before any other – even your mortgage. This can be detrimental as it can impact your ability to pay other bills, thus damaging your credit score. Additionally, a property usually cannot be sold, and banks typically refuse to refinance a property, if there is a lien on it, therefore impacting your ability to sell your home or refinance your mortgage.

So what do you do if you have a property tax lien on your home? The best way to solve the problem of having a property tax lien on your home is to pay off the outstanding debt. This may seem difficult, but there are options.

The best option is to refinance your first mortgage or take out a second mortgage through your local mortgage broker. This will allow you to use the equity in your home to pay off the property tax lien, in turn saving you the interest you would have been forced to pay had you just continued to pay the monthly lien payments. A longer amortization period often means that your monthly payment increase is minimal and therefore your ability to pay is increased.

Sometimes your mortgage broker will voluntarily pay the off the lien, meaning you are then required to pay them back. This may seem like a great option, however, this could result in your house being put up for power of sale if you default on your payments to the mortgage broker. This option is probably best avoided.

Another seemingly viable option is to apply for a credit line or loan to eliminate the debt and get rid of the property lien. Again, this may just cause more problems as it is just another monthly payment for you to struggle with.

Want to avoid going into arrears on your property taxes in the future? A good way to do this is to get your mortgage broker to roll your property taxes in with your mortgage. Having one monthly payment may be much more manageable, and your property taxes will not default – thereby avoiding a property tax lien.

For more information about property tax liens and what to do if you have a property tax lien on your home, please contact Paul Mangion at The Mortgage Centre by calling 416 204 1256 or visit www.themortgagecentretoronto.com