When multiple debts are crushing your ability to make mortgage payments, consolidation strategies can address the root cause and prevent foreclosure.
Many homeowners facing foreclosure aren't struggling because of their mortgage alone — it's the combination of credit card debt, car payments, lines of credit, CRA tax debt, and other obligations that drain their income. When total debt payments exceed what you earn, mortgage payments are often the first to fall behind.
In these cases, stopping foreclosure requires addressing all of your debt — not just the mortgage.
If you have equity in your home, you may be able to refinance your mortgage to consolidate all debts into a single, lower monthly payment. This uses your home's value to pay off high-interest credit cards and loans.
A consumer proposal (filed through a Licensed Insolvency Trustee) can reduce your unsecured debts by up to 80% and stop collection calls, wage garnishments, and CRA collections. This frees up cash flow to keep your mortgage current. Note: A consumer proposal does not stop mortgage foreclosure directly, but it addresses the debt burden that caused the missed payments.
A debt management program through a credit counselling agency can consolidate unsecured debts into a single payment with reduced or eliminated interest. This won't directly stop foreclosure, but it reduces your total monthly debt burden.
A private lender can refinance your mortgage and roll in all other debts — creating one single payment. Higher interest rate than a bank, but significantly lower than credit cards (often 19-29%). Best when you have strong home equity.
We assess your full financial picture and recommend the best path to stop foreclosure and resolve your debt.