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Understanding Mortgage Arrears: How Private Money Lenders In BC, Canada Can Assist You

By December 23, 2022Mortgage Solutions
couple going through mortgage arrears

If you are a homeowner in British Columbia, Canada, and are experiencing mortgage arrears, you may be wondering about your options. Mortgage arrears refers to an unpaid debt on a loan that has been secured by a property. In the case of mortgages, this means that if you cannot make the payments on your home loan, the lender can foreclosure and apply for an order for sale.

This process can be complicated and stressful for both parties involved — the lender requesting payment from you and the borrower struggling financially. If you find yourself in this situation and need help with your mortgage arrears, there are private money lenders in BC who can assist you.

What Are Mortgage Arrears?

Mortgage arrears occur when a homeowner has missed regular payments in transactions where these are required by contract. This can happen for several reasons, such as unemployment, ill health, or a change in financial circumstances. Mortgage arrears can be a serious issue, as once someone is in arrears, it can be difficult to catch up.

According to a report by the Canadian Bankers Association (CAAMP), out of 5,104,211 mortgages, 0,14% are in arrears. That’s about 7.3 thousand Canadians struggling to make their mortgage payments every month.

What Are The Consequences Of Mortgage Arrears?

When a homeowner falls into mortgage arrears, they can face serious consequences. The most obvious is the foreclosure of their home by the lender. This can have a devastating effect on the homeowner and their family, as they will be forced to move out of their property and may have difficulty finding another residence.

In addition, a homeowner in mortgage arrears could also face a lawsuit from the lender. If the lender is successful in court, they could be awarded a verdict against the homeowner, which could result in wage garnishment, bank account seizures, and other financial penalties.

Finally, a homeowner in mortgage arrears will also face damage to their credit rating. This can make it difficult for them to obtain financing in the future and even prevent them from getting a job or renting an apartment.

How To Avoid Mortgage Arrears?

The best way to avoid mortgage arrears is to make sure that you can afford your monthly mortgage payments — even if you experience an unexpected job loss or medical emergency.

Additionally, if you find yourself in a situation where you can no longer afford your mortgage payments, it is important to take action as soon as possible. Talk to your lender and explain your situation. Many lenders are willing to work out a payment plan or modify your mortgage terms to make them more affordable.

Finally, it is also a good idea to set up an emergency fund to cover your mortgage payments in case of unexpected financial hardship. Building up a cushion of savings can give you a financial safety net in the case of an emergency.

How To Get Help With Mortgage Arrears?

If you are in mortgage arrears in British Columbia, there are several options available to you. The first is to talk to your lender and explain your situation. 

You can also contact a non-profit credit counselling service. These services provide free advice and assistance to people in financial difficulty. They can offer advice on how to manage your debt, as well as negotiate with your lender to restructure your mortgage payments.

Finally, you may also consider getting help from a private money lender.

Private Money Lenders In British Columbia

Private money lenders in British Columbia are a great resource for people in mortgage arrears. These lenders provide quick and easy access to funds to help people get out of their financial difficulties. Private money lenders are also able to provide flexible repayment terms, allowing borrowers to pay back their loans over a longer period.

couple in canada discussing mortgage arrears with financial advisor

Private money lenders can be individuals or companies. Individuals can often provide funds more quickly and with more flexibility than large financial institutions. Companies, on the other hand, are more regulated and often have more stringent requirements for borrowers.

What To Consider When Selecting a Private Money Lender 

When selecting a private money lender in British Columbia, there are several factors to consider. First, you should ensure the lender is licensed and regulated by the BCFSA BC Financial Securities Commission. This will guarantee that the lender is operating legally and that your funds are secure.

You should also check the lender’s reputation and look for reviews from previous customers. This will give you an idea of how the lender treats its borrowers and how responsive they are to customer inquiries.

Finally, you should also compare the terms and interest rates different lenders offer. Some lenders may offer lower interest rates or more flexible repayment terms, whereas others may charge higher fees or have more stringent requirements.

Conclusion

Mortgage arrears can be a serious problem. If you find yourself in arrears, it is important to take action as soon as possible! Working with a private lender is a great way to get out of financial difficulties. These lenders have been around for decades and have helped thousands of people across BC Canada get back on track with their mortgages and keep their homes. 

When selecting a private money lender in British Columbia, make sure to do your research. Or better yet, work with a reputable mortgage broker and let them help you find the right money lender for your situation. When it comes to private money lending, reputation is everything. Reputable mortgage brokers will do their best to guarantee that both the lender and the homeowner receive the best service possible. 

Contact us today to learn more about our services and what we can do for you. With the right help, you can get out of mortgage arrears and get back on the path to financial stability.

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