What Should I Do When I Get A Foreclosure Notice In Edmonton?
Getting a foreclosure notice can be the worst feeling you can have. First you bought this home you dreamed of owning scott free and now you are in a position where you can no longer make the payments and the bank wants to take it away from you.
You think to yourself; how the hell did it come to this? I am embarrassed and I don’t know what to do. What am I going to tell my kids, my friends, my family.
You are not alone…. In Edmonton hundreds of families have to deal with this exact situation every year. Although the oil patch hasn’t dried up on us, many jobs have and we need to push through in order to move forward. Hopefully the pipeline is approved we say.
Right now Edmonton real estate is at a pretty low value and many families are unable to save their homes from foreclosure. I hope I can help, I am writing a series of articles for people in your exact situation.
Don’t worry, it is not the end of the world. Check out these other foreclosure articles for more information on what you can do to get out of foreclosure in Edmonton.
What should I do when I receive a foreclosure notice in Edmonton?
1. Don’t wait to act
The longer you wait, the more back payments and fees you will get tacked onto the principal amount. I have a client right now that has 36k in back payments at high interest. On top of that the current bank would not finance them any longer. They were lost and we were able to help them.
2. Get a payout statement
You Need to know exactly what you owe so that an Edmonton mortgage broker can get you financed by a different lender. They may be able to take some more money out of the houses equity for you to live on until you are back on your feet.
3. Try to make Payment arrangements
If you have had a good history of payment some banks may give you a grace period and tack it onto the back end of your mortgage term. This means your amortization period (time to pay off) will become longer. This is best case scenario
4. Refinance/extend your amortization
Say your house is worth 300k and you owe 100 k. If you refinance it you can pull out 150k out of the current house and get it financed elsewhere. Therefore paying back what you owe and having more cash in hand to pay out other debt.
5. Get a Home Equity Line Of Credit
Having a home equity line of credit, or HELOC is a major asset. A good mortgage broker will get you a mortgage in the first place with one of these built in. So that as you pay down your mortgage, more line of credit becomes available to you.
5. Debt consolidation
Consolidate all of your credit card debt etc in a home equity line of credit or unsecured line of credit so that the payments are low. Maybe having the monthly debt lower will make it easier to make your payments on time.
6. Get a new Job
Don’t let your ego be the reason you lose your house. I see too many people from Edmonton come into my office and tell me they are pipeline this and pipeline that. The fact is if it is not paying the bills, then it is not enough.
7. Get a mortgage broker
We can help you navigate the process and there are no upfront fees. We are paid by the banks to do a service for you.
8. Consider bankruptcy
If there is no equity and a lot of debt, going through the bankruptcy process may be your best option.
9. Sell your home
If the house is just too much, try downsizing or renting.
Whatever you decide to do we are here to help you. Please call us very early in the process so that we can get a jumpstart on fixing your situation. There is no reason to be embarrassed as we see this and fix this type of thing for people every day.
Read The Article 7 Secret Tips To Get Out Of Foreclosure In Edmonton
Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”