Forced Mortgage Refinancing And What To Do About It
“Is Your Mortgage Lender Refusing To Renew Your Mortgage?”
With all that’s happened over the last two years in the mortgage market to the south, the ripple effect still hits the Canadian shores from time to time. Some of the sub prime mortgage lenders in the states have also been operating in Canada. And for the ones that have not been able to survive the impacts of the recent economic turmoil in the U.S. housing market, their financial down has had direct impact on Canadian mortgage holders as well.
The result has seen mortgage holders forced into a situation where they must repay their existing mortgage in a market that doesn’t always provide any easily visible options.
For example, say that you were able to secure a high ratio mortgage 5 years ago on average credit from a sub prime lender and during the 5 years you never missed a payment. But one of the reasons you were dealing with a sub prime lender was due to some combination of credit and repayment history. Now, 5 years later, the mortgage is being called, real estate values in your area may have dropped, and you’re still in need of a high ratio sub prime lending product that may no longer exist in the market.
So what do you do?
There are a number of different mortgage refinancing strategies that can be considered, each will depend on what you have to work with and the mandate of the mortgage lender that is rapidly moving through collection to foreclosure.
You could look at paying out the mortgage in full, offering a settlement, purchasing the mortgage, or financing the mortgage itself.
The first thing you may want to consider is getting some legal advice from a real estate lawyer with experience dealing with these types of situations.
The second thing you might want to look at is finding an experienced mortgage broker who also has had experience with these types of financing scenarios. The mortgage broker would likely have very good access to private mortgage financing sources as this could very well be the only option available to you.
Working through the different scenarios with the right expertise can not only save you a bunch of time, but can potentially lead to a solution that doesn’t involve losing your home.
If you have a tough refinancing scenario such as what’s described above, or some other variation, please give me a call so we can further discuss potential options you can consider.
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About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel