What should you do if the unforeseen should happened; loss of job, loss of extra income or illness, how can you manage your mortgage. These unfortunate events are difficult on their own, but to have the fear of losing your home can have detrimental effects. This can be an overwhelming experience and leave you feeling insecure and unsure of what to do next. Don’t be alarmed, these feelings are natural when having a difficult life experience.
What Steps Should You First Take
The number one thing is to access your situation and come to terms with the next step. Don’t let fear keep you from becoming educated in what is available to you or finding solutions.
Get a list and create two columns, Worst Case Scenario and Best Case Scenario. Worst Case can be long term situation and Best Case is short term. Do a laundry list of options don’t be afraid to go from sensible to what may seem ridiculous, somewhere between that range, you may find some solutions.
Don’t be afraid to let trusted friends and family know, sometimes people feel this is embarrassing, but odds are, friends and family may have gone through something similar or have some ideas or can assist you.
Speak to your Mortgage Broker or Mortgage Professional, they are experienced and can guide you through the process and offer professional solutions. You should contact them right away so they can start moving on successfully managing your financial situation, the earlier, the better. For your mortgage professional to fully understand your financial situation, before attending the meeting, get together all your financial documentation such as loans, savings, income, credit cards, etc.
Chances are you have purchased homeowner mortgage default insurance. Each of the three insurers have an assistance program to help you should there be temporary financial hardship and if you qualify. Speak to your Mortgage Broker about the assistance programs offered.
CMHC – Canada Mortgage and Housing Corporation
Mortgages insured by CMHC have access to mortgage professionals who have tools and will work with you to find a solution to your financial situation. Some of the options include adding any missed payments to the mortgage balance and spreading them over the repayment period, special payment arrangements and more.
Genworth Financial Canada
Genworth offers a Homeowner Assistance Program that is designed to help homeowners who are experiencing temporary financial difficulties and in certain situations to seek help from their Homeowner Assistance Specialists. These specialists are trained in identifying the best workout solutions for you. If you qualify, Genworth has a number of options available.
Canada Guaranty has the Homeowners Solution Program for Canadians who find themselves experiencing unexpected financial difficulties. This program stresses the importance of the involvement of the lender and borrower at the first sign of financial distress. This program puts the onus on the lender. The Lender is the one that works with Canada Guaranty to find a workable solution for all concerned using a Canada Guaranty Loss Management expert.