Mortgage Arrears Help

Mortgage arrears can feel manageable at first and then become overwhelming. A borrower may miss one payment because of a temporary problem, then another payment comes due, then late fees and interest are added. If the lender advances taxes, pays insurance, or sends the file to a lawyer, the amount needed to fix the problem can grow quickly.

Arrears help starts with clarity. How many payments are missed? Has the lender added legal fees? Are taxes or insurance also unpaid? Is the lender willing to accept arrears, or has it demanded the full mortgage balance? Without those answers, it is hard to know whether the file can be fixed by payment or needs a larger plan.

Confirm the arrears in writing

Do not rely only on a phone conversation. Ask for the arrears amount or payout in writing. If the file has gone to a lawyer, ask whether legal costs are included and whether the lender will accept arrears to bring the mortgage current.

Then compare the lender’s number with your own records. Review bank statements, mortgage statements, returned payment notices, e-transfer confirmations, certified cheque receipts, and any emails about payment arrangements. If a payment is missing or misapplied, send proof quickly.

Understand why the lender is concerned

The lender may be worried about more than missed monthly payments. Property taxes may be unpaid. Insurance may have lapsed. Condo arrears may exist. A private mortgage may have matured. A second mortgagee may be concerned that equity is shrinking. Each problem can change what the lender will accept.

If the lender’s concern is taxes or insurance, proof that the issue has been fixed may help. If the concern is maturity, a refinance or full payout may be needed. If the lender has already served a notice of sale, arrears help becomes more urgent and the timeline should be reviewed immediately.

Payment plans need proof

Borrowers often ask for time to catch up. That may be possible, but the request should be realistic. A proposal should say how much will be paid, when it will be paid, and where the money is coming from. Proof of income, family funding, sale proceeds, tax refund, business receivable, or other funds can make the request stronger.

It is usually better to propose something realistic than to promise a payment that depends on uncertain events. A broken arrangement may make the lender less willing to wait again.

Refinancing or selling

If arrears cannot be paid quickly, refinancing may help. A refinance should be supported by a broker update, written commitment if available, appraisal status, conditions list, and expected closing date. The current payout must also be known.

A controlled sale may be the better choice if keeping the property is not realistic. Selling before the lender controls the process can sometimes preserve more equity and reduce added costs. The sale plan should include a realistic price, realtor information, payout figures, and a closing timeline.

Get advice before notice

Arrears do not always become power of sale, but they can. The earlier the file is reviewed, the more choices there may be. A lawyer can help confirm the amount, communicate with lender counsel, dispute unsupported charges, negotiate time, and plan payment, refinance, or sale before the file becomes harder to control.