It is a fact that foreclosures in Canada are on the rise. Whether it is an effect of the 2008 United States housing meltdown or a sign of poor financial planning, is debatable. What is not debatable is the reality that a lot of Canadians are getting kicked out of their homes. Homes which they have lived in and paid amortizations for years. This article will provide simple facts about foreclosures in Canada in order to provide the reader with a basic understanding of foreclosure and how to deal with the same.

Canada Foreclosures: Prevention

The reality is that not all foreclosure properties can be saved. A majority of them will end up in the hands of the highest bidder or in the possession of the bank or lender. However, a lot of these homes can still be saved through proper information dissemination. One such important fact is the ability of a borrower/mortgagor to call the lender and renegotiate the terms of the contract of loan through a refinance, loan modification, a second mortgage, etc. Here is a step by step approach to negotiating an existing loan:

1. Take out a copy of your loan documents (i.e. promissory note, Good Faith Estimate, TILA docs, etc.) and browse through the same.

2. Pay special attention to the type of loan, interest rate, payment period, etc.

3. Fill out an income and expense worksheet to determine your actual capacity to pay a loan.

4. Contact your lender and ask to have unfavorable loan terms such as balloon payments, adjustable rates, penalties, etc. be modified into a fixed type regular amortization with proper interest rates.

5. If need be, repair your credit score/rating in order to get lower rates.

6. Request for a loan modification. For example, ask to have arrears placed at the back of the loan period instead of earning interest and penalties.

7. Request for a refinance quote and then compare term and conditions

Canada Foreclosures: Alternatives to Losing Your Property

There are of course alternatives to negotiating with lenders. This is especially true for consumers who have a hard time determining who actually owns the mortgage or the promissory note as well as hostile lenders who may have acted in bad faith. Some of the alternatives to consider are:

1. Bankruptcy

2. Credit Repair

3. Debt Negotiation

4. Debt Consolidation

Canada Foreclosures: Knowing When to Give Up

The reality is that not all properties subject to a mortgage can be saved from foreclosure. This is especially true for lender/mortgagors who over extended their financial capacity or made fictitious claims regarding capacity. This is also true fore individuals who have fallen under hard times. If a loan modification, refinance, or any other option is not available or feasible then it is time to consider a short sale. A short sale is especially useful for consumers whose properties have low market prices, or at least lower than the amount in arrears. This is because a short sale may be negotiated to be in full satisfaction of all debts.

Are you looking for more information on Canada Foreclosures? If you are, visit http://www.foreclosures-gov.ca/ now!

Are you looking for more information on Canada Foreclosures? If you are, visit http://www.foreclosures-gov.ca/ now!

Author Bio: Are you looking for more information on Canada Foreclosures? If you are, visit http://www.foreclosures-gov.ca/ now!

Category: Real Estate
Keywords: loan modification,avoid foreclosure,avoiding foreclosure,loan modification representative