Missing a mortgage payment in Canada
Missing a mortgage payment in Canada is serious matter. The reason a Canadian homeowner goes into foreclosure or power of sale is important for all to understand. As a Canadian homeowner one can be prepared for such a situation as the aforementioned, and as a Canadian professional real estate investor, one can be informed as to what causes foreclosure or power of sale and how to be of service. Death, job loss, medical expenses, and divorce are a few of the most common reasons Canadians face foreclose or power of sale on a home. These factors are real and an everyday part of society.
Missing a mortgage payment in Canada can trigger power of sale process in Ontario. According to Ontario Mortgage act Where a mortgage by its terms confers a power of sale upon a certain default, notice of exercising the power of sale shall not be given until the default has continued for at least fifteen days, and the sale shall not be made for at least thirty-five days after the notice has been given.  R.S.O. 1990, c. M.40, s. 32.
Missing a mortgage payment in Canada and cash flow issues going on and Canadian home owners try to juggle and decide which debts to repay. It’s tough but can be worked out.
Canadian home foreclosure or Power of Sale
Both are a legal process designed to provide the Canadian mortgage lender an option to sell the property in the event the Canadian homeowner defaults or miss mortgage payments.
Foreclosures in Canada involve the court system. This means it is much slower; foreclosures can easily take 6-10 months. Foreclosures are more common in Nova Scotia, Saskatchewan, Manitoba, Quebec, Alberta, and British Columbia.
Power of Sale is much faster. In some cases the Power of Sale can happen within weeks, but you will generally have a 35 day redemption period. This means you will have 35 days after being served notice to pay all your debts (including incurred fees) and get thing back on track. Ontario, Newfoundland and Labrador, New Brunswick, and Prince Edward Island.
Missing a mortgage payment in Canada
Step one: contact your Mortgage lender as soon as possible
Canadian mortgage lenders prefer not to go through foreclosure or power of sale process. Their goal is to safeguard their investment and assist Canadian homeowners to find a reasonable and affordable solution.
Canadian homeowners can be very reluctant to contact the Canadian mortgage lender or bank due to fear and not knowing what to expect.
With the majority of Canadian mortgage lenders, being forced out of the home happens only when all efforts and options have been fully explored.
The Canadian mortgage lenders may be able to offer you following four options
*Change amortization to lower monthly payments
*Switching from a variable rate to a fixed mortgage to provide a consistent payment plan you can budget for without fear of any future interest rate increase
*Refinancing or second mortgage
*There may be an option to add missed payments to the back of your current mortgage
There is limited action the Canadian mortgage lender or bank will take in the early days besides calling you and remind you to pay in time.
Missing a mortgage payment in Canada
Step two: Inform the Canadian mortgage lender or bank if you are about the miss next payment
So call the Canadian mortgage lender or bank manager. Canadian mortgage lender or bank manager may not always be able to offer solutions but they can assist you to downsize to sell your property, refinance or obtain a loan from family and friends.
Missing a mortgage payment in Canada
Step three: Ignore and hoping all will disappear
Ignoring is certainly drawing the attention of Canadian mortgage lenders or bank. Cooperation works much better and save cost and hassle for all parties in concern.
Missing a mortgage payment in Canada
Step four: Make mortgage payments first rather than unsecured debt
Make mortgage payments to keep your home
The general rule is if you want to keep your home, your mortgage should take priority over paying the unsecured debts. You have many more options to deal with unsecured debt vs. secured debt.
Missing a mortgage payment in Canada
Step five: Consolidate all your debts into Mortgage
The cheapest way to rent or borrow money is first mortgage on your principal residence in Canada. Before you stop paying the unsecured debt to make the mortgage affordable, you should seek professional advice and ensure you have a plan in place to deal with the unsecured debt.
Finding a solution to deal with the other debts i.e. credit cards, lines of credit, consolidate loans etc. is all the help people need to obtain a positive cash flow each month and make the mortgage easily affordable.
One of the key things to look at if you are about to miss a mortgage payment is whether you can afford the house you live in, or whether you’re over-extended.
If you decide your house is unaffordable then there are options.
Obviously if there is equity in the house, selling the house is the best option.
If you are in a negative equity situation then this needs to be carefully planned and professional advice is required.
