The drop in oil prices has had devastating effect on many Canadians. Not only is it responsible for thousands of job losses in Alberta, where foreclosures in Calgary are up 30 percent over last year, it has also negatively influenced provincial economies across the country, and despite what some news reports say, logically it is only going to get worse before it gets better.
“Low oil and commodity prices will remain a significant drag on growth while the low Canadian dollar has so far provided only a small boost to the manufacturing sector based in Eastern Canada,” said TransForce CEO Alain Bedard in a Canadian Press article that appeared last week on Canada.com
And many Canadians who aren’t yet feeling the pinch have started to reduce spending, which will have a further negative effect on the economy. While Winnipeg has historically been somewhat insulated from wild swings in the Canadian economy, it would be foolish to think that the current economic situation in Canada will not have some type of negative effect on Manitobans.
If you’re one of those in Winnipeg who are already feeling the ripple effects of reduced oil prices, inflated real estate, job losses and a lower Canadian dollar, to the point where your mortgage payments have fallen behind, below are a few steps that might help you prepare in advance to avoid foreclosure and the negative implications it can have on your credit rating.
Four smart steps to take to avoid foreclosure
- Talk to both your lender and the company that insured your mortgage and let them know in advance that you are experiencing difficulties. If they’re smart and you have a decent track record with them, there’s a good chance they’ll be willing to work with you or at least offer you some direction.
- Don’t be afraid to talk to friends and family members. They may or may not be able to help you financially, but there is a good chance they will have some ideas for you. Talking about your situation with someone you trust can not only provide you with some ideas and contacts, it can also help you lower your stress levels.
- Create a budget that allows you to have the essentials and look for ways to further cut costs. Start tracking what you are spending and on what. You might be surprised at how much you can save with a few simple but regular adjustments. At the same time, if you can increase your income by even a small amount, you may be able to double the power of your budgetary plan.
- Organize your debts and determine where you stand overall financially before you decide to see a finance/credit reorganization company. An organized spreadsheet of income and expenses will not only help you understand your situation better, it will help the assisting organization quickly determine what avenues you might consider to get your finances back on track.
If you have completed all the tasks above and still cannot figure out a way of meeting your mortgage obligations, there may still be additional options to pursue that will allow you to avoid foreclosure and the negative effect it can have on your credit rating.
Visit us at WinnipegShortSale.com for more information.
