Tips to Avoid Mortgage Foreclosure in Alberta

 

The video has a few tips but here are what the major banks and CMHC is suggesting to do if you find yourself hit by the current economic situation. 

 

- Talk to your bank or Mortgage Company.  Don’t try and talk to the bank teller as generally they are not educated on the whole process and what your options are.  You can also talk to the person who arranged the mortgage for you to see if they know what the process is.  Each bank has a certain process and it is in their best interest to make some arrangements.

 

-  If your mortgage is CMHC, Genworth, or AIG insured and your bank isn’t making any arrangements you can try and contact them to see what they suggest.  It is the responsiblity of the individual bank or lender to make the arrangements but they are under contract by the insurer to try and work things out. 

 

-  The key is to talk with the mortgage lender before you are late on the payments.  This is the responsible thing to do and the banks like that.  There are numerous cases that I have heard of where the banks have made the exceptions for those that have lost hours off of work or will be out of work for a set period of time. 

 

-  Things to bring when talking with your bank is a financial statement.  Go through your bills and what assets you have so that the bank has all the information up front.  Maybe interest only payments or extended amortization will be just the boost you need to get by. 

 

-  Consolidating debts or refinancing can be a great way to help you get through some tough times and still keep your home. 

 

- You can also see if your original mortgage commitment has something that is called a “miss a payment”.  This would allow you to call in and allow the payment to be missed for that month and then it will be added on to the end of your term.  Most of all the major lenders offer this option. 

 

Some things you will want to keep in mind are that the bank has you under contract and they do have the end decision.  Don’t expect to just have your payments waived for a few months, especially if there are other assets or means that you can pay your bills.  If you would like to go over your personal situation please feel free to contact me.