As soon as a mortgage payment is missed, most lenders act quickly. They often send a reminder letter first. If they don't hear from you or don't receive the missed payment after that, their next step is to send you a demand letter. In BC, the lender must send you a demand letter before going to court to ask for foreclosure. Foreclosure is a court process where the lender tries to take your property because you haven't paid your mortgage.

Good starting points include:

• Can't Pay Your Mortgage? What You Can Do If You're Facing Foreclosure, from the Legal Services Society, explains what you can do when you’ve missed mortgage payments and the lender is threatening to take your property. It discusses the three options available to you:
  • solving the problem, by reinstating your mortgage (working out how you can catch up on your payments) or redeeming the mortgage (paying it off)
  • doing nothing, which has serious consequences, including no say in foreclosure proceedings
  • going to court to fight the foreclosure, to get more time, or to co-operate
     
  • Foreclosure, from the Canadian Bar Association BC Branch, describes the foreclosure process and what you can do if a lender starts to foreclose on your mortgage.
     
  • Consumer Law and Credit/Debt Law: A Guide for British Columbia, from the Legal Services Society, has information for advocates whose clients are facing foreclosure. See the chapter on "Mortgages and foreclosure," which includes strategies for solving the problem by reinstating or redeeming the mortgage, as well as tips for safeguarding the borrower's rights during the foreclosure process.

tags

foreclosure, mortgage, missed mortgage payments