Can’t Pay Your Mortgage? Options To Keep Your House
How Can I Keep My House if I Can’t Pay My Mortgage?
A mortgage is the largest and most expensive loan that most people will get during their lifetime.
This loan covers the cost of a home, enabling you to escape the pressure of paying rent, while also building a legacy for your kids and grandchildren.
With mortgages having such long payment terms, though, many people find themselves unable to keep paying the rates that they used to pay in the past.
Let’s take a look at some of the tools that can be used to solve this problem without losing your home in the process.
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What Are Your Options?
Consolidate Debt With A Second Mortgage
One of the most common problems people have when trying to pay a mortgage is covering the other debt they’ve built over the years.
Taking out a second mortgage to replace your existing loans will make it much easier to pay everything back, while also giving you the chance to take the confusion out of your finances.
Of course, this will only be possible if you still have a good credit rating, and you may need to work towards improving this if you can’t get a new mortgage approved.
Sell & Downsize Your Home
The size of your home will always impact the amount the place costs you.
Having more rooms will mean that your utility bills go up, and the price of larger homes tends to be higher than what you’ll pay for smaller ones.
This can make selling and downsizing to a new home into a good way to handle your mortgage when you’re struggling to pay it.
You may even be able to escape your mortgage costs altogether if you’ve already put a lot of money into your current home.
Make A Proposal To Your Creditors
A consumer proposal is a process that can help you to avoid bankruptcy by giving you the opportunity to talk to your creditors about your situation.
You will be able to negotiate your payment terms to find a solution that works for both parties, while also benefitting from a stay of proceedings to keep you out of court.
Bankruptcy Canada can help with your proposal and act as your trustee throughout the process.
File For Bankruptcy
Finally, as the last option to consider, it’s time to think about filing for bankruptcy.
While this sort of process can be scary and many people worry that they will lose their home if they go through it, you can file for bankruptcy without losing this crucial part of your life.
Your mortgage will become part of the bankruptcy process, and this means that any payments you make towards it will go directly to your trustee.
Bankruptcy Canada has had the opportunity to work with countless clients who are worried about losing their homes.
This aspect of your life should never have to be in jeopardy, though, and you have plenty of tools available to help you with it.
We encourage anyone who is in this position to get in touch with our friendly team for support.