5 Alternatives for People Behind Their Mortgage Payments

5 Alternatives for People Behind Their Mortgage Payments 

If someone is behind on their mortgage payments in Canada, there are a few different options available. Individuals can try to work out a payment plan with their lender, apply for government assistance, or sell their home. They can also declare bankruptcy or give their home back to the bank through a process called foreclosure.

If someone is struggling to make their mortgage payments, it’s important to understand all of the options so that they can make the best decision for their situation. Read on to learn more about the different alternatives available to people who are behind on their mortgage payments in Canada.

1. Work Out a Payment Plan With the Lender

If someone is behind on their mortgage payments, one option is to try to work out a payment plan with their lender. This may involve making smaller payments over time or making a lump sum payment. The individual may also be able to extend the term of their mortgage. If someone is struggling to make their mortgage payments, it’s important to contact their lender as soon as possible to discuss their options. Lenders are typically willing to work with borrowers who are struggling to make their payments.

2. Apply for Government Assistance

There are a number of government assistance programs available to people who are struggling to make their mortgage payments. The type of assistance that a person is eligible for depends on the province where they live.

For example, the Homeowner’s Assistance Program in British Columbia helps homeowners who are experiencing financial hardship due to a job loss, natural disaster, or other factors. The program helps homeowners who are behind on their mortgage payments and are at risk of foreclosure.

3. Sell the Home

If someone is behind on their mortgage payments, one option is to sell their home. Selling the home can help the individual get out of debt and avoid foreclosure. If the home is sold for less than the amount of the mortgage, the individual may be able to negotiate a short sale with their lender. A short sale is a sale of a property for less than the balance of the mortgage.

4. Move to More Affordable Home

If someone is behind on their mortgage payments, they may want to consider moving to a more affordable home. By moving to a cheaper home, the individual can reduce their monthly mortgage payments and get out of debt. If the individual is unable to sell their current home, they may be able to rent it out and use the rent money to help make their mortgage payments.

5. Declare Bankruptcy

If someone is behind on their mortgage payments, they may want to consider declaring bankruptcy. By declaring bankruptcy, the individual can eliminate their debt and avoid foreclosure. However, bankruptcy will have a negative impact on the individual’s credit score.

Conclusion

If someone is behind on their mortgage payments, they may want to consider one of the above-mentioned solutions. By taking action, the individual can avoid foreclosure and make the best decision for their situation.

Debt Helpers is a company in Canada dedicated to providing people with customized debt solutions, consulting services, and more. The company hopes to give people the chance to achieve financial independence and stability by managing their debts first. Browse our website to see our resources and advice on handling debt.