The average number of foreclosures on the market seems to be increasing with each passing month. Once upon time foreclosures were rarely discussed, let alone a common occurrence, but in today’s market, buyers are now looking for that ‘distressed deal’.
The fact of the matter is that many Canadian homeowners are now holding mortgages greater than the value of their house. Perhaps they bought when the housing market was strong like back in 2007 and got locked in with a high interest rate on their mortgage, but still want to sell in today’s market. With the real estate market sale prices still unstable, the value of homes are getting assessed for lower and lower and if you factor in a possible penalty for getting out of your mortgage, some home owners are now finding it difficult to even clear title let alone make a profit on the sale of house.
Now if you have come across some tough times, perhaps loss of a job or an illness in the family and are falling behind on your mortgage payments and you fear that shadow of foreclosure will creep up on you, don’t wait until it is too late.
It is not all doom and gloom; you still have a couple moves you can make before things go from bad to worse.
First off, don’t be embarrassed of your current situation if you’re close to getting foreclosed on. You would be surprised to know how many people are facing the exact same thing.
Second, you can’t avoid this problem. It will not go away if you don’t open up your mail or answer your ringing phone. You need to take the ‘bull by the horns’ and ask for help. Call your bank and explain to them the situation, I think you would be surprised as to the willingness of the banks to work with you to help avoid the foreclosure scenario.
It’s a difficult time in our economy and it saddens me to see all of the foreclosures out there on the market. I empathise with everyone’s situation, but strongly urge you to be proactive and exhaust every possible option that’s available to you.