# How to Navigate Foreclosure by Addressing Non-Mortgage Debts
**Published Oct 03, 2024 – Last updated 15 hours ago | 4-minute read**
Thinking that you might need to file for bankruptcy can lead to many sleepless nights, but even more stressful is the thought of losing your home if you can’t keep up with your mortgage payments.
At a time of high home equity line of credit (HELOC) payments and increased mortgage payments due to higher interest rates, the word “foreclosure” is becoming more common. If you’re worried about the possibility of foreclosure, the best thing you can do is arm yourself with information so that you can either avoid it altogether or navigate it as successfully as possible.
## Addressing Non-Mortgage Debts Can Help Navigate Foreclosure
If you find yourself in a situation where you need to file for bankruptcy, that doesn’t automatically mean that you’ll lose your home or face foreclosure. The bankruptcy process usually only deals with your unsecured debts, and steps can be taken to manage mortgage payments.
A mortgage is a loan secured by property, meaning that if you fall behind on payments, the lender can take steps to recover what is owed, potentially forcing the sale of your home. However, there are ways to avoid losing your home to foreclosure by effectively managing non-mortgage debts.
## FAQ
### Can bankruptcy lead to losing your home?
Bankruptcy does not automatically mean losing your home. The process usually deals with unsecured debts, but steps can be taken to manage mortgage payments effectively.
### How can communication with lenders help avoid foreclosure?
Maintaining active communication with your lender can help in managing the foreclosure process. Responding to notices, attending hearings if necessary, and preparing to qualify for new financing are important steps.
### What should you do if you can’t make mortgage payments?
If you are unable to make mortgage payments, avoid communication with your lender. They can advise on payment-deferral options, hardship programs, refinancing, or other possible solutions.
## Conclusion
Ultimately, addressing non-mortgage debts before foreclosure proceedings begin can significantly help navigate or even avoid the foreclosure process altogether. Seeking help from credit counselors and creating a budget to manage expenses are crucial steps in this process. By staying proactive and managing debt effectively, you can take control of your financial situation and avoid the stress of facing foreclosure.
By Sandra Fry, a Winnipeg-based credit counselor at Credit Counselling Society, a non-profit organization helping Canadians manage debt for over 27 years.
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