CMHC/Shorfall/bankruptcy

June 30th, 2011 by Questions

I was taken in by a scam by getting approval for a mortgage when family friend and her mom assumed the mortgage. They have defaulted and now the bank has foreclosed and it taking possession July 1 and I just found out that she has recently filed for bankruptcy. What happens to the shortfall with CMHC is she going to be exempt since she has filed for bankruptcy already? Is her mom going to be held responsible? Or is cmhc going to look at me for the shortfall?

Posted from: Alberta

Questions

One Response to “CMHC/Shorfall/bankruptcy”


June 30, 2011 at 7:45 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If the other party to the mortgage has already filed for bankruptcy they will be legally cleared from all debt associatd with this mortgage, including CMHC. As you are still listed on the mortgage you will be the one CMHC will turn to for full payment of any shortfall that exists.

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