How to Avoid Foreclosure in Canada
Foreclosure is one of two ways lenders in Canada recover funds from a mortgage that has been defaulted on. There are ways that a person can keep a home once he has received notice of foreclosure from a lender, but the best way to deal with foreclosure is to avoid it entirely.
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Instructions
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Make your mortgage payments on time. You can set up a monthly bank transfer or send your lender post-dated checks to ensure the payments arrive on schedule. Each mortgage payment you miss increases your risk of foreclosure.
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Carefully read any letters or notices you get from your lender. They may contain information on your mortgage terms that you need to know. Respond to any letters or notices from your lender immediately, if a response is needed.
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Don't move out of your home or abandon the property. Moving out disqualifies you from assistance you might otherwise qualify for, like renegotiating your mortgage with your lender.
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Contact your lender if you're having trouble making timely payments or if you are going to miss a payment. You may be able to renegotiate your mortgage to make the payments more affordable.
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Sell your property before the foreclosure date and pay off the mortgage out of the proceeds. This is called a "pre-foreclosure sale." You can make a pre-foreclosure sale if you can sell the property for 70 percent or more of the money you owe on it and can sell it in less than five months.
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References
- Photo Credit monetary street image by Yuriy Poznukhov from Fotolia.com throw-over calendar image by Aleksandr Ugorenkov from Fotolia.com abandoned home image by Tom Oliveira from Fotolia.com
