Ontario Second Mortgage Lawyers
A house is one of the most expensive items a person can buy. A mortgage can make up a huge chunk of your monthly income. Some people have second mortgages as well and this can make it hard to keep up with payments.
Many people got second mortgages on their homes for repairs or perhaps extra money for life expenses, such as weddings, college tuition, medical bills, and cars. With all that money long gone, homeowners are now left with the aftermath: unaffordable payments.
However, making mortgage payments should be a top priority. Your first and second mortgage payments are considered secured loans. They are tied to an asset (your home), so if you stop making payments, your home is in jeopardy. It could go into foreclosure and you could lose it.
You’ll want to avoid this situation if at all possible. That’s why it may be worthwhile to get legal help from Wadhwani & Shanfeld. Contact our Ontario second mortgage debt lawyers to learn about your options.
The Problem With Second Mortgages
A mortgage is used to purchase a property, allowing a homeowner to make payments instead of having to save up hundreds of dollars at once. Since homes often increase in value over time, they gain equity. A homeowner can use this equity to get a second mortgage on their home.
This is a good way to get access to a large sum of money — perhaps $100,000 or more. The problem with this is that sometimes the market crashes. This can cause a homeowner to end up with negative equity, which means they owe more than what the home is worth.
What Options Do I Have?
If you are having issues with paying your second mortgage, there are options available that will allow you to keep your home. One option is a mortgage settlement. This works like a debt settlement, in which the lender would agree to accept less than the balance of the loan to resolve the debt.
Most lenders are favorable to mortgage settlements, since very few want to foreclose on a home. They would rather negotiate a deal with the borrower so they can recoup some of their losses. Plus, if the lender of the second mortgage were to foreclose on the home, the proceeds would first go to the lender of the initial mortgage. If you have negative equity in your home, the lender of the second mortgage will most likely be left with nothing. It would not be in their best interest to foreclose on your home. You would be in a good position to negotiate on your second mortgage.
Contact Wadhwani & Shanfeld Today
It’s important to stay on top of mortgage payments. Whether it’s your first or second mortgage, your home can be repossessed by the bank if you fail to make timely payments. Contact the team at Wadhwani & Shanfeld to understand your options. To schedule a consultation with our Ontario second mortgage lawyers, call our office at (800) 996-9932.