Your home is very important. It’s the place you have shared many wonderful memories with your loved ones. The mortgage on that property is the most important financial commitment you have. Once you take out a mortgage, the lender gets a claim on your home. In case you fall into arrears, the lender might eventually seek to repossess your property.
If you are facing difficulties in repaying your mortgage, even if you aren’t in arrears, it’s wise to seek advice from a professional. Delaying the mortgage repayments results in arrears build up that will worsen your situation. Your lender’s main objective isn’t to repossess your property; the institution simply wants you to continue repaying your mortgage. Repossession is the last resort.
Fortunately, you have a few debt management options rather than losing your home. This write-up offers useful advice that can help you take control of your personal finance and be in a position to make your monthly mortgage payments seamlessly.
No. Mortgage is an unsecured debt. That simply means that the debt is backed by one of your assets (your property) and it must be repaid. Otherwise, your lender (the bank or any other financial institution that funded the purchase of the property) will repossess the property.
Repaying your mortgage loan is the best way to eliminate any possibility of losing your home. This debt can’t be included in your consumer proposal as this option wipes out your unsecured debts such as credit card debts. Besides, filing for bankruptcy won’t wipe out your mortgage payment obligation.
However, that doesn’t mean you can’t do anything to prevent repossession of your property by your lender. You can file a consumer proposal. This is an approved court proceeding that can help you minimize all your monthly bills and free up your money to make a mortgage payment on time and keep your property.
Yes. Here are ways of minimizing the amount of your monthly unsecured debt payments:
Experts advise that you should always consult a professional before taking any of the three actions discussed. It’s important to understand your debt situation perfectly before taking any action to avoid instances or worse financial crisis.
You can contact a local debt professional for detailed guidance about your options. Most professionals offer a no-obligation assessment of your financial status and offer a detailed explanation of how each of your debt relief options can help in lowering your monthly debt repayments. Thus, you can choose the most viable option to lower your monthly costs and make your mortgage payments on time.