Have you recently been laid off or seen your disposable income dwindle? Are mortgage payments getting harder to make?
If you answered yes to any of these questions, you are among the millions of Canadians struggling since COVID-19 caused nationwide shutdowns. Some homeowners are already facing power of sale or foreclosure.
Don’t Lose Your Home, You have Options
If you live in Innisfil and you are facing power of sale or foreclosure, there are proactive things you can do to keep your home.
If you have recently missed a payment you should contact your lender and try to renegotiate your payment plan.
If your lender will not renegotiate your payment plan, it is likely that the lender is planning to start foreclosure or power of sale on your property. You will need to pay the total outstanding balance on your mortgage to stop the foreclosure or power of sale.
You can get a loan to pay the balance.
You can use your home equity to secure a loan. Equity is the value of your home that you have completely paid off. Depending on the lender, you may need to have a certain credit score or a minimum level of equity in your home in order to be approved. Even if you do not have a high credit score or level of equity, there are lenders who can help.
There are different loan arrangements available in the financial marketplace.
Mortgage refinancing is a when you get a new mortgage to pay off the old one.
Most people choose mortgage refinancing to save on borrowing costs as the new mortgage’s interest rate is set to the current market rate. This makes mortgage refinancing a cost-effective solution when interest rates are low like they are during COVID-19.
To qualify for mortgage refinancing your original mortgage must be worth less than 80 per cent of your home.
A second mortgage is a loan or line of credit that also provides the cash needed to repay the debt. In Ontario, you will need at least 20 percent home equity to qualify for a second mortgage.
How Long Does It Take to Get a Statement of Claim?
About 15 days after you have defaulted on your mortgage, the lender may file a Notice of Sale to alert the court and you that they will proceed with a power of sale or foreclosure against you.
Upon receiving the Notice of Sale, you have 30-45 days to get your mortgage back in good standing by repaying the missed payments or the entire mortgage balance, depending on what your lender wants.
This is known as the redemption period.
When the redemption period ends, you will receive a Statement of Claim. The Statement of Claim says that the redemption period has passed and the lender will proceed to the next stages in the power of sale process. Typically, this is followed by a Writ of Possession, then Judgement for Possession, then an Eviction Notice, then an Eviction.
How Can I Stop Power of Sale and Foreclosure in Innisfil?
To stop power of sale in Innisfil or foreclosure you need to find a way to repay your lender.
If your lender will not accept the missed payments, you must repay the entire balance remaining on your mortgage to keep your home.
Innisfil’s real estate market is growing, which can help homeowners get the help they need.
If you live in Innisfil, chances are your home is worth more now than last year. This means you have more equity in your home. You can use your equity to secure a loan capable of repaying the lender and stopping power of sale or foreclosure.
Innisfil home values have been rising throughout 2020.
In November 2020, the average price of a home sold in Innisfil was $688,488. As of mid-December 2020, the average price of a home sold in Innisfil is $720,000. Since December 2019, prices have risen by rising over 27 per cent. Depending on how much home equity you have and the balance remaining on your mortgage, you may have many borrowing options to keep your home. Use the Loan-to-Value-Ratio tool to calculate your home equity and find out what kind of loan you can get.
Information is vital for making the right financial decision, especially concerning your home. It is equally important to find the right lender that best fits your needs. At the Mortgage Broker Store, you can speak with mortgage brokers in Innisfil to stop power of sale and get a quote for free. They can help you find lenders with the most cost-effective loans. They can also offer you a loan if they can’t find a better deal.