- A mortgage in which basic terms -- such as interest rate, term and monthly payment -- are altered or restructured to prevent foreclosure on the property. This is not a regular practice in Canada.
loan restructuring, workout
Related Terms and Acronyms
- Debt Consolidation — Definition,
- The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
- Default — Definition,
- When a borrower fails to fulfill the obligations of a loan or lease.
- Delinquency — Definition,
- Failure to make mortgage payments when mortgage payments are due.
- Delinquent Mortgage — Definition, Important,
- A mortgage loan where the borrower fails to make payments as specified in the loan agreement.
- Forbearance — Definition,
- Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
- Foreclosure — Definition,
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
- Refinance — Definition,
- To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.