personal finance,  real estate

What if you can no longer afford your mortgage payments?

What can you do if you can no longer afford to make the mortgage payments on your home or rental property?


This is for general information purposes only. Seek legal advice about your particular situation. #realestate #realestateinvesting #realestateinvestor #realestatetiktok #mortgage #personalfinance

♬ original sound – Toronto Trustee

You could sell it of course, but what if the sale price isn’t enough to pay off the mortgage and you end up with the shortfall? Now you’ve got a huge problem.

Under normal circumstances, a bank will not discharge its mortgage until it’s paid in full.

The problem is you’re not going to be able to find a buyer because no buyer is going to want to give you money until the mortgage is discharged.

One option of course is to let the bank deal with it by surrendering the property to them. Banks always want to avoid this because it’s too costly and time consuming for them to be in the business of selling property on their own.

They’d rather let your do it because they know that you’re going to try to find the best price possible to minimize your loss.

Therefore, with the assistance of your real estate lawyer, you can try and facilitate a deal with the bank where they allow you to sell the property for the highest price possible and they’ll discharge the mortgage so that the buyer will have no problems giving you the money. And they’ll have some sort of external payment plan in place so you could pay the shortfall over time. That’s the best case scenario.

However, what often happens in these types of situations is that the debtor can no longer make the payments on the shortfall then he or she ends up seeing a Licensed Insolvency Trustee to file a bankruptcy or consumer proposal to deal with the shortfall debt.


Victor is the President of Fong and Partners Inc. He is a Licensed Insolvency Trustee and Chartered Professional Accountant. With many years of experience in the insolvency field, Victor has been involved in both corporate and consumer insolvency engagements. Previously with a large national firm, Victor founded Fong and Partners Inc. so that he could dedicate his professional life to help people from all walks of life to deal with their debt.