For a homeowner in Alberta, going through a foreclosure action can be a very costly ordeal in many areas of life. These include the obvious and substantial implications it can have on ones financial stability and personal credit rating, but more importantly, the devastating impacts on ones overall psychological health and well being. The key to surviving the ordeal is educating and empowering yourself about the process to help you make positive decisions.
When a homeowner finds themselves behind on their mortgage payments and facing the daunting prospects of trying to catch-up on their overdue mortgage payments and avoid foreclosure, it can be emotionally and physically challenging ordeal. Stress occurs within the family, with loved ones, relationships, work-life balance and ones happiness. The family unit could tend to feel the effects more prominently, causing what seems like an energy draining black cloud to settle overhead. Worst of all, this type of cost is mostly unseen by outsiders. Even close family could remain ‘in the dark’ as homeowners remain silent of the financial chasm that opens beneath them.
It really takes only one major disruption in a limited income household to upset the normal balance of supporting a family’s needs and maintaining obligations to creditors. An endless variety of scenarios could contribute to upsetting this balance. The primary breadwinner could, for example, become injured in a non-work related accident or contact a debilitating or degenerative disease. They could lose their employment position due to an economic downturn, corporate restructuring, internal conflict with management, or a myriad of other possible scenarios that, on their own or in combination, could exacerbate a family’s ability to maintain their dream of home ownership.
Once the late payment notices start arriving at the doorstep, they can seem almost impossible to stop. It can become very easy to ‘bury your head in the sand’ and hope that the problem will solve itself, that you will recover from your illness, that a job promotion or new position is just up over the horizon. Maybe a second job will help you catch up on outstanding debts. Maybe the bills will just stop coming.
The truth is that you need to keep a clear head and remain well informed of where you are financially. A budget plan is essential to helping you understand your financial strength and true ability to repay any outstanding debts. Being diligent about finding a quick resolution to this issue is always in your best interest. Communication with your lenders is key to determine if a speedy resolution can be devised, placing you much closer to being financially stable.
Monetary strain is certainly the most obvious cost of foreclosure to a homeowner who finds himself behind on his payments, but the more damaging emotional cost remains an unfortunate by-product of the whole process that can outlast any monetary setbacks. Making sure you take action to educate yourself and avoid extending the process any longer than necessary is the best way to limit the financial and emotional costs of foreclosure.