Can I Catch Up My Mortgage Payments?
Possibly. If the lender is still willing to bring the mortgage back into good standing, catching up the arrears may be the simplest solution. But once enforcement has started, the amount required can be more than just the payments you missed.
← Back to Power of Sale QuestionsYou Need the Lender's Actual Reinstatement Amount.
If enforcement has already started, simply adding up the missed monthly payments may not tell you what is required. The lender or its lawyer can confirm the amount needed to bring the mortgage back into good standing, if reinstatement is still available.
Missed Mortgage Payments
The unpaid regular payments will normally form part of the amount required to catch up the mortgage.
Accrued Interest
Interest can continue to accrue while the mortgage remains in default, increasing the amount needed to resolve the arrears.
Lender Legal Fees
Once the file has been sent for legal enforcement, the lender may add its recoverable legal costs to the amount owing.
Enforcement Costs
Depending on the mortgage and stage of the file, other permitted charges and enforcement expenses may also need to be dealt with.
Property Tax Arrears
If property taxes are behind, they can affect the overall mortgage situation and may need to be addressed as part of the solution.
Timing Matters
The further enforcement has progressed, the more important it is to confirm immediately what the lender will accept and by what date.
Arrears and Reinstatement Are Not Always the Same Number.
Homeowners often know roughly how many payments they have missed and assume paying those payments will automatically fix the mortgage.
Once enforcement has started, you need the lender's actual requirements. That is the number we should work with before deciding whether catching up is realistic or another solution is needed.
Ask the lender or its lawyer for the current amount required to resolve the default.
Find out whether there is a specific date by which the lender requires the funds.
The dates and amounts in the legal documents help establish where the enforcement process stands.
If you can resolve the arrears, acting earlier is generally better than waiting for another enforcement step.
Then We Look at the Equity and Other Financing Options.
Not having enough cash to catch up the mortgage does not automatically mean there is no solution. If there is sufficient equity in the property, refinancing may still be possible.
Refinance the Existing Mortgage
Replacement financing may allow the existing lender, arrears and enforcement costs to be paid out in full.
Alternative or Private Financing
If bank financing is unavailable, an alternative or private lender may consider the file based on the property, equity and exit strategy.
Family Assistance
Family funds may sometimes cover all or part of the amount required, or reduce the replacement financing needed.
Confirm the Property Value
An appraisal is generally required if refinancing is part of the solution because the available equity is critical.
Confirm Everything Owing
We need the mortgage balance, arrears, legal costs, property taxes and other registered debts that may have to be paid.
Have a Real Exit Strategy
If short-term financing is required, there should be a realistic plan to refinance, repay or sell before it comes due.
Find Out What the Lender Actually Requires Before Deciding You Cannot Catch Up.
If reinstatement is still available and you can raise the required funds, catching up may be the cleanest solution. If the amount is too large, the next question is whether there is enough equity and enough time to arrange replacement financing.
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