Prevent Foreclosure with Practical Measures: How to Ensure Success!

Facing foreclosure is a challenging experience, but strategic plans, quick action, and making informed decisions by consulting with experts can make all the difference. If you live in Calgary, plenty of solutions can help you cope with the financial instability and prevent your house from getting sold. So, here we have listed specific unconventional but effective strategies to save your home and protect your credit by stopping foreclosure.

Foreclosure – What You Need to Know

As a judicial procedure, foreclosure assists both the lender and the homeowners. If the homeowner defaults on the mortgage, the lender can file a claim to sell the house and recover the overdue. Still, at the same time, the foreclosure process allows the homeowner to apply strategies or negotiate with the lenders to stop their property from being seized. 

Remember that a lender prefers avoiding foreclosure, which is time-consuming and expensive. So, if you can build a positive relationship with the lender, then choosing alternative means of repayment can pave the way for mutual benefits. With more info on stopping foreclosure, you can work out different alternatives, such as:

• Use a Reverse Mortgage (For Seniors)

As a senior, you can tap into your home equity without immediate repayment. This process is known as a reverse mortgage, where funds from supplemental income cover the mortgage arrears. However, the homeowner has to be 55 years old or older to meet the eligibility criteria to apply.

• Request a Loan Modification

You can also try to restructure your mortgage terms through loan modification, making the payment manageable. You can extend the loan terms and spread them over a long period or request your lender to reduce the interest rate, but this will only apply if the market favours it.

• Partner with Real Estate Investors

You can also look for real estate investors searching for properties they can buy “as-is.” These are investors who specialize in helping homeowners who are about to face foreclosure. In this perspective, you can look for home buyers in Calgary and set up a Sale-Leaseback Agreement, based on which you can remain a tenant, even if you sell your home. Also, if you keep a buyback option, when your finances improve, you can regain the ownership of the house. 

• Access Homeowner Assistance Programs

You can also apply for governmental programs designed to support homeowners who are about to face foreclosure and have difficulty coping with the financial requirements. You can sign up for different mortgage relief programs, but before you join, you must investigate local, provincial, and Federal options. Alternatively, you can check if you are eligible for property tax assistance, relieving you of paying the overdue property taxes.

Final Words

If foreclosure is looming, there are multiple innovative solutions that you can apply as a Calgary homeowner. You can sell your high-value assets, which would provide the funds to pay the debt. To raise the capital, downsize personal possessions, such as vehicles or jewellery. Moreover, you can also consider liquidating investments and cashing out stocks and mutual funds to stabilize your financial situation.