Are you looking to stop foreclosure Toronto? We can help!
Foreclosure is never the ideal situation to be faced with, however plenty of homeowners in the Toronto area are forced to make this decision when they run out of other options. Before surrendering to foreclosure, take a look at the following options that may help you and your family out of a very complex situation.
Before you can stop foreclosure Toronto, you need to understand how foreclosures work
In order for a foreclosure to initiate, the borrower must stop making payments on their mortgage loan. There are a variety of factors that may lead to halting payments; some of the common ones include the loss of a job, a divorce, the loss of a family member, medical injuries that prevent you from working regularly, or the climb of other debt that forces you to ration your money.
Once the homeowner goes into default from lack of payment, the lender will contact the borrower in order to determine payment dates and amounts. If nothing can be done, the lender will file a Notice of Foreclosure in court and the process begins; the timeline will vary from when the homeowner will be evicted.
If you’re looking to get help during the foreclosure process, here are some common methods of action for homeowners to stop foreclosure Toronto
1. Attempt a loan modification
If you are unable to meet your mortgage payments, the first step to prevent defaulting on your loan and facing foreclosure is to contact your lender and apply for a loan modification. There are plenty of options typically available to borrowers, including lowering the interest rate, reducing the loan amount, lengthening the term of the loan to create smaller payments, or other negotiations you may work out. Renegotiating your borrowing terms can be a fantastic source of help when you are facing foreclosure, and it is the smartest decision if you can continue making payments of some kind. Choosing this option will often result in a large stack of paperwork and a bit of a dragged out process (often the lender requires a detailed description of your current state to showcase how the defined loan payments cannot be met), however the process will pay off in the end if it results in postponing foreclosure.
2. Borrow money from another source
Although this option may not help in the long run when facing a foreclosure in Toronto, borrowing money may be a good fix if your financial problems are temporary or short term. If you are seeking financial help just for a few loan payments (starting a new job soon, another source of income will initiate soon, getting married) then seeing if you can borrow money from another credit source, friends or family can push back foreclosure and keep you in the green. If your financial struggles are more long term, however (divorce, loss of a job, severe medical issue that has forced you off work) then borrowing money may not help in the end as the amount will be much more steep and another loan owed back will only cause stress. It is a good idea to analyze your current state of being and decide if your financial struggles are temporary or long term, then you can make a qualified decision on whether or not borrowing money is the right decision to avoid foreclosure.
3. Consult a professional
If you need help on making a quick decision regarding foreclosure prevention, sometimes the best advice needs to come from the experts! Talk to your lawyer and discuss different options that may suit your needs and current state. Attorneys can also look into your mortgage legalities outlined in your agreement and assist with pushing back on defaulting. There is always a fee associated with lawyer consultations, but if it means keeping a foreclosure off your record, it may be the smartest decision.
If you decide to sell your home before facing foreclosure (more about that option in the paragraph below), then another professional to contact would be your real estate agent. Most real estate agents have had clients in the past that require a quick sell in Toronto to avoid foreclosure, so they bring a wealth of knowledge to the table.
4. List your home as soon as possible
Let’s face it, if you are reading this article in fear of foreclosure happening to you, there are likely factors happening today that are indicating that you will default on your mortgage. If you haven’t yet missed a mortgage payment and have not received a notice of foreclosure, one way to pay off your mortgage (and hopefully gain a bit of a profit) is to list your home as soon as possible. The smartest ways to position yourself to sell your home quickly include:
- Analyzing the Toronto market and knowing what price point will be enticing to homebuyers for a quick sell
- Cleaning and staging your home to showcase the endless possibilities for the new family moving in
- Recognize if you are in the right season to list; winter and summer often result in less buyer traffic, so aim for the spring and fall!
- Ask your real estate agent for help; many of them will be experienced in quick sales due to possible foreclosure, and can take certain steps to avoid that possibility
5. Sell your home for cash
If you have waited a bit too long and are at a dangerous risk of facing foreclosure, we can certainly help. We have helped many families facing foreclosure in the Toronto area and have a team of professionals that can discuss your options with you. Fill out the form below or make a quick phone call to discuss a cash offer that meets your needs in order to avoid potential foreclosure. You are under no obligation and there is no fee associated with discussing this option.
The process is extremely simple: contact us, we arrange a home visit, then we make a cash offer. If you are under a time crunch, we get it; our cash offers come in within 24 hours and you have the option to take it or leave it. Contact us today to get help and avoid foreclosure!