You have fallen on hard times. You were out of work for a few months, You had to take time off to look after an ailing relative, You got injured at work and did not have disability insurance.
Basically You have not been able to meet your mortgage payment obligations and have fallen behind missing multiple mortgage payments.
The bank has sent you letters demanding that you get your payments up to date but you simply have not been able to.
Things escalate and the bank refers their mortgage file over to their high paid lawyers.
The lawyer now sends you a letter stating that you are in default and that the bank is beginning power of sale proceedings.
Now not only do you owe your regular payments to the bank but their administration fees and lawyers fees plus interest is being added to all of this compounded. This starts to add up very quickly. Lawyers know how to bill.
Your choices are to take control and list your house for sale as quickly as possible reducing these extra administration fees.
If you are lucky you are able to sell your home and payout the mortgage and extra expenses before there is no equity left.
At this stage you regroup, perhaps rent or if there is enough equity purchase another more affordable home. More than likely your credit is shot but if you have enough of a down payment you can still qualify for a mortgage at rates that may be 1 to 2% higher than the best rates.
you put the cash in the bank and rent until things improve.
You have the possibility of paying out the lender with a new lender mortgage.
The other option is the bank takes control and lists your house under power of sale. They obtain two appraisal (at your cost) and provide their listing agent the listing. The listing agent makes note on the listing that the house is being sold under power of sale with no warranty. A feeding frenzy is about to begin that will most likely drive the price of your home down.
Once it is sold and all fees deducted you may be lucky enough to get some equity paid to you that is left over.