I don’t think a single Canadian would deny that, in the last 12 to 18 months, there have been drastic changes to our economy. Job security or simply HAVING a job can no longer be taken for granted.
Chances are someone you know has had their wages cut or lost their job altogether. Current and foreseeable economic conditions make finding a new job difficult. Payments become increasingly hard, if not impossible, to make. With this in mind, serious questions need to be asked even though it’s natural to want to avoid them.
There is an elephant in the room of many Canadian homes right now. This elephant is foreclosure, and it’s a real possibility for many families. The good news is that options exist to avoid foreclosure and retain some of the equity you have worked so hard for. From your lender’s perspective, they DO NOT want to foreclose on your home. It’s time-consuming, a logistical nightmare, and they rarely recuperate their costs. Speaking with a mortgage specialist colleague, it’s in the lenders best interest to work with you so you can keep your home.
So what are potential options to avoid foreclosure? Naturally, each situation is unique. In some cases, lenders will work to implement an extended “skip-a-payment” with few, if any, penalties. Mortgage life may be extended to consolidate higher-interest debt whereby making payments more manageable. If these options aren’t available, then the best suggestion is to sell your home to maintain your equity while you have it.
With home prices decreasing in hardest hit markets, the goal is to extract as much equity as possible before all is lost. Selling your home in the current economy is not only possible, but you may sell for more than you think. Determining how to make this happen can seem overwhelming which is why you need professional help on your side. The key is having a knowledgeable, focused real estate agent that will give you no-holds-barred advice about your home’s value and target demographic, as well as a comprehensive advertising, marketing, and sales plan. You need someone who will work with you to preserve as much of your hard-earned equity as possible.
Benefits are two-fold. First, you keep as much equity as possible. Second, no elephants are harmed in the process.