Foreclosure is when your lender or bank takes over your property after you have failed to comply with the terms of the mortgage agreement. It is a dreaded scenario for all borrowers. But, what will you do if by some misfortune reason you are unable to pay your mortgage dues? How will you deal with the situation? Will you let the bank take over your home and render you and your family homeless? Obviously not. You will want to try your best to avoid the foreclosure. Be it with the help of an attorney in Edmonton or a financial expert, you will attempt to either delay or avoid the process.
If you are on the verge of foreclosure, then here are a few ways that might help you deal with this adverse situation:
Communicate With Your Lender
Speaking with your lender might be the last thing you want to do, especially if you have been unable to pay your monthly installments. But, ignoring their emails and calls is not an option either. If you choose to calmly communicate about why you have been unable to make your payments, then there could be a possibility for negotiation. You can either ask your financer to extend the date of foreclosure or reduce your monthly payments, whichever option is feasible.
Try Refinancing Your Mortgage
If you have enough equity, then refinancing your mortgage can be a good option. You can do this by consolidating other debts into your mortgage. By doing this, you might be able to reduce 20%-30% of your monthly debt load. But, if you opt for refinancing, you need to be sure that you can keep up with your payments.
Focus On Reducing Expenses And Increasing Income
You will be aware of your financial health a couple of months in advance before you face the foreclosure. During this period, you should reduce your overall expenses and work towards increasing your income. If it is a job loss that is severely affecting your equity and your debt payments, then try and get a new job to be able to pay up your dues before your lender sends you a foreclosure notice.
Filing for bankruptcy can be the last resort you take in this situation. Although legally declaring bankruptcy might not avoid your foreclosure, but it might will delay the process. Plus, if your home falls under bankruptcy exemption, then the court might protect your asset from being sold. But, before you take the plunge, do seek advice from an attorney in Edmonton.
Consult A Lawyer
The stress of dealing with foreclosure can block your ability to cope with the situation. Hence, it is a good idea to consult a lawyer for possible solutions to avoid foreclosure. An attorney in Edmonton will be able to hear you out and come up with logical remedies to effectively deal with the situation.
You can reach out to our legal experts to know more about avoiding foreclosure.