Millions of properties across the country are in the midst of a financial recovery process. So it’s vital for all buyers of mortgages to understand this process.
So, what is a notice of exercise in Montreal?
Many homeowners across the country are struggling to pay their mortgages month after month.
When a homeowner fails to pay his mortgage for 3 to 6 months, his lending institution sends him a warning that he must pay or lose his home. This process is better known as “advance notice”.
advance notice
exercise
“.
Banks and other mortgage lenders generally offer homeowners a period of
three months
to catch up. Obviously, this number varies from institution to institution, and sometimes even from situation to situation.
When a homeowner fails to make the payments expected of him, the bank seizes the house, takes full possession and evicts the owner. Fortunately, at this stage of the financial recovery process, borrowers have several options to avoid losing their home.
Notice of exercise – Options available to borrowers
If you’ve fallen behind on your mortgage payments, you’ve probably received an exercise notice, also known as a notice of default, from your lender.
This document indicates that you’ve been missing payments for quite some time, between 90 and 180 days.
At this point, there’s absolutely no need to panic.
.
There are ways to delay and prevent the foreclosure of your home:
- If your home is worth more than the amount owing on your mortgage, you may be able to refinance your mortgage. This will reduce the amount you have to pay each month. Check out what’s available to you in Montreal by talking to your mortgage broker, or contact our team and we’ll refer you to a reputable broker.
- You could sell your house quickly to a real estate investor team, then use the money to pay off your debt (or *maybe* we can negotiate with your lender to forgive all or some of your late payments). We can buy your home in Montreal, Quebec City or surrounding areas. We can often close within a week or two. We always pay cash, and you won’t have to worry about finding a buyer.
- You could talk to your bank and ask permission to do a short sale. If you do a short sale, you’ll sell your home for less money than what’s owed on your mortgage, and then the bank will absorb the loss.
- You could declare bankruptcy. This could give you a little more time to pay off your debts. However, declaring bankruptcy will leave its mark on your credit file for years to come, and could cause significant damage.
Lenders are well aware of the country’s current situation. They are therefore ready to work with borrowers to find solutions.
If you communicate honestly with your lender, you’ll probably discover that they have several options to help you keep your home, or at least avoid a disaster on your credit report.
In fact, a financial recovery could affect your credit rating negatively; you could lose 200 to 400 points, and this could prevent you from taking out a loan for the next 5 to 7 years. That’s why we strongly recommend that you don’t leave anything lying around if you’ve received a notice to exercise from your lender.
If you can’t find a solution by talking to your lender, contact our team. We can help.
How we can help if you have received a notice to exercise
- We can help you sell short – fill in our form on our website and we’ll assess the situation before proposing a plan of action.
- We can buy your home in the Montreal area – We buy homes in Montreal and will be happy to make a cash offer on your property. Simply fill in our form >>
- You can ask us questions and we’ll give you FREE advice. We’ll also share reliable sources of information with you, so you can make an informed decision. This service will cost you nothing, there’s absolutely no pressure, and there’s no obligation. We simply want to advise and help you.
If you received a notice to exercise a short time ago, you can still work things out.
Contact your bank and see if it’s ready to team up with you. Or contact our team if you’d like to find out how much we can offer for your home, or to learn more about how toavoid a financial repossession.
