A few major reasons for mortgage defaults are:
- Marriage breakdown
- Loss of employment / failure of business
- Over extended credit / people living beyong their means
- Revenue Canada judgement / other large judgement
- Health problem / addiction / substance abuse
When you are in arrears for mortgages, it is the best to first contact the lender about your reasons for the interruption in income. Seek for help from friends and relatives.
Generally, after 3 payment arrears, the lender will send out a demand letter. Another 3months after, the lender will send out foreclosure letter and a court order for foreclosure. If the property owner is granted for 6 months redemption, it is the best to seek for advice from a professional mortgage broker for different options available.
Filed under: FAQ, Foreclosure, Private Lending
