Honest choices
Your options when you're behind on your mortgage
Catch up on the arrears
Tends to make sense when: You've had a short, one-time setback and now have the funds (savings, family help, a bonus) to pay what's owed.
Advantages
- Simplest and usually least expensive
- Keeps your existing mortgage and rate
Trade-offs
- Lender's legal and enforcement costs may be added
- Only works if the underlying cause is resolved
Refinance with a new lender
Tends to make sense when: You have reasonable equity and income that can support the new payment, and your credit or situation fits a bank, credit union or alternative lender.
Advantages
- Pays out the old mortgage, including arrears, in one step
- Can consolidate other debts into one payment
- A fresh start with on-time payments helps credit recover
Trade-offs
- Recent missed payments may limit you to alternative lenders with higher rates
- Prepayment penalties, legal and appraisal fees
- Needs enough time to complete approval and closing
Private or alternative second mortgage
Tends to make sense when: You have meaningful equity, a temporary problem, and a clear plan to refinance or repay within roughly one to two years.
Advantages
- Often faster to arrange than a full refinance
- Focuses more on equity than credit score
- Brings the first mortgage current without breaking it
Trade-offs
- Higher interest rates and lender/broker fees
- Adds a second payment, it must be affordable
- A bridge, not a long-term solution
Negotiate with your current lender
Tends to make sense when: You're early in the process and can show your situation is improving, a new job, return to work, or a defined recovery date.
Advantages
- No new financing costs
- Options may include a repayment plan, deferral, or adding arrears to the balance
Trade-offs
- Lenders aren't obligated to agree
- Terms can be strict; missing a plan payment may restart enforcement
- Always get agreements in writing
Sell before a forced sale
Tends to make sense when: The payments aren't sustainable long term, equity is limited, or refinancing isn't available.
Advantages
- You control timing, pricing and presentation
- Usually avoids additional enforcement costs
- Typically preserves more equity than a power of sale
Trade-offs
- Means moving, which is emotionally hard
- Needs to happen before the lender has a binding sale agreement
An honest note
Not every situation can be solved with new financing. Approval always depends on a lender's own review of credit, income, equity and the time available. If I don't think refinancing is in your best interest, I'll say so, and in some cases, a sale on your own terms, a conversation with a Licensed Insolvency Trustee, or legal advice is the better path.
Talk it through, privately.
A free, confidential conversation, no judgment, no pressure, and no credit check to start. We'll look at where things stand and what your realistic options are.