Foreclosure something no homeowner wants to deal with, but it usually starts the same way: a job loss, a health issue, or an income drop that makes it hard to keep up with payments. The most important thing you can do is act early.
Here’s what to do if you’re behind on mortgage payments, and how to protect your options before foreclosure becomes a legal process:
What Does Foreclosure Mean?
Foreclosure is the process a lender can start when mortgage payments aren’t being made, with the goal of recovering what they’re owed. The details vary by province and lender, but the important point is this: once the process is underway and lawyers or courts are involved, your choices usually shrink.
That’s why timing matters.
Don’t Ignore Your Financial Problems
When people are under stress, it’s normal to want to avoid hard conversations. But ignoring the bank is one of the fastest ways to make a tough situation worse.
If you’re behind on payments, the best move is to confront reality early. The sooner you do, the more likely it is you can keep control of the outcome.
If your income dropped because of job loss, illness, injury, or another major life event, tell your lender. You’re trying to do two things:
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Show you’re taking the situation seriously
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Ask what short-term relief options exist
Sometimes lenders can offer temporary help, like a payment deferral or a short-term arrangement, depending on your situation.
Understand Your Options Before Things Escalate
If payments are not realistic in the near term, you still may have options. The earlier you explore them, the better.
Depending on your situation, options can include:
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A short-term payment arrangement
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A payment deferral (when appropriate)
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Selling the property before the lender takes control of the sale
Selling on your terms is almost always better than being forced into a rushed timeline later.
Why Timing Matters With Mortgage Foreclosure
There’s a big difference between being one or two payments behind and being deep into a legal process. The farther down the road you are, the fewer options you have.
If there’s one takeaway here, it’s this: don’t wait until the situation is in the lender’s legal department – act while there’s still room to negotiate.
Whether you are preparing to buy your first home or your fifth, if you’re looking to get pre-approved for a mortgage in Edmonton, fill out my online application. I’m here to help you every step of the way.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’m trusted partner who will help you get the right mortgage for your home or investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.
