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Avoiding Home Mortgage Evictions

If you are unable to meet your mortgage payments and obligations for an extended period of time, your bank or lending institution may engage in legal proceedings to have you (and your family) removed from your home or premises after a specified date. This action is commonly known as a notice of eviction, or home eviction, and its outcome can be most unpleasant.

In addition to losing your current place of residence, the details of your missed or delinquent payments are kept on file by credit reference agencies. This history could prevent you from obtaining another residential mortgage in the future, even if your financial situation improves over time, since banks and lending institutions may contact these agencies to determine your credit rating before approving a new application.

Facing a Pending Home Eviction? Do You Have Any Options?

If you are facing a potential home eviction, despite the severity of this situation and its consequences, all is not necessarily lost. There are opportunities/options that you can pursue to postpone the eviction or have the action reversed. Working through any such options with your bank or lending institution will necessitate the involvement of an experienced mortgage professional.

At Mortgage Intelligence, we have established partnerships with more than 50 lenders across Canada, including major banks, credit unions, trust and insurance companies, and other national, regional, or private lenders.

This includes situations in which we have worked in conjunction with these lenders to postpone or possibly reverse home evictions through the following mortgage-related actions:

  • Reducing the amount of the monthly mortgage payments for a specific period of time
  • Reducing or eliminating the penalties charged for overdue accounts
  • Extending the period of the mortgage – this will reduce monthly payments but ultimately result in more total payments in the long run, thereby increasing the overall cost of buying your home
  • Negotiating a “payment holiday” – deferring any and all payments for a brief period
  • Negotiating an interest-only payment plan for a brief period

It is important to note that your lender would prefer to continue collecting your payments rather than initiate a home eviction and/or a Power of Sale on your home or property. Lenders are usually not interested in selling real estate and will often work with you to rectify the situation.

Tip: Although you may certainly elect to deal with your lender directly, it is strongly advised that you use the services of an experienced mortgage professional. Any potential mortgage solutions or agreements between you and the lending institution need to be thoroughly scrutinized and evaluated before they are implemented and signed – and you do not want the emotions of your situation to affect a less than optimal resolution on your behalf.

Natasha Bridmohan and her experienced team at Mortgage Intelligence will guide you through the various postponement or reversal processes, answer all of your questions, and ensure that you obtain the best possible outcome.

For further information on how we can help you deal with a pending home eviction, contact Natasha and her team of Toronto mortgage brokers. Call us at 1-866-553-7467 ext 221 or 905-851-8871 ext 221.

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