A Notice of Foreclosure is every homeowner/mortgagor’s nightmare. This is especially true post the 2008 housing meltdown. This need for security has not gone unnoticed by the world market thus governments, NGO’s, nonprofit organizations as well as those for profit has tried to bridge the gap with products and services to meet that demand. This article will provide a simple and straightforward approach to avoiding foreclosure through prevention.

Foreclosures in Canada: Choosing your Lender

The first step to avoiding foreclosure is finding the right lender that can work with you and work out a home loan that suits your financial capacity as well as personal circumstances. Almost every lender out there will insist on a take it or leave it basis. There are plenty of lenders out there, and most of them have websites that you can easily browse and compare at the comfort of your own home. Tip; go to comparative websites that allow you to evaluate lender rates as well as offerings. However you should never close a long term loan without personally going to the local office of the lender. You can find out a lot about the lender you have chosen via the internet but there are some things that have to be discussed personally. And remember, never, ever work with a sub-prime company.

Foreclosures in Canada: Choosing Your Loan Type

This is arguably the most important step in avoiding foreclosure. As a general rule, the best type of loan is the fixed rate mortgage. This is because the monthly amortization is fixed from start to finish allowing the borrower a certain degree of stability and predictability. More importantly the amortization rate will almost always be within the financial capacity of the borrower from the very start. Now, for most borrowers, opting for an Adjustable Rate Mortgage (ARM) is not the right decision. This is because an ARM is subject to regular adjustments. And even if there is an adjustment limit and an overall cap on the interest rate, the increase will more often than not be unmanageable. However, for some consumers an ARM may be the right type of mortgage to get. Other types of mortgages are balloon type, hybrid ARM, option ARM, etc. For a more detailed discussion it is best to consult with a credit counselor or a financial manager.

Foreclosures in Canada: Renegotiating With Your Lender

For those who already have an existing mortgage, it would be best to bring out the loan documents. Pay special attention to the promissory note, good faith estimate, closing documents, etc. to determine the type of mortgage, interest rate, adjustments, balloon payments, etc. Now, anything other than a fixed term mortgage must be renegotiated with the lender. Call the lender, ask for more information about the loan. Then speak to a loan modification representative within the bank. Remember, there are a lot of third party loan modification companies out there, it would be best to avoid dealing with them as of yet. First prioritize the “in house” loan modification specialists from your lender. This way, you avoid additional fees as well as possible scams.

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

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

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

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