Can a mortgage be cancelled?

January 30th, 2009 by Questions

I am about to file a consumer proposal, and am midway through a 5-year mortgage. I have made all my mortgage payments on time, and will continue to do so. My mortgage broker has told me to be careful, because the company that wrote my mortgage has gone bankrupt and is trying to dump high-risk mortgages.

My question is – the boilerplate mortgage agreement says that the mortgage can be cancelled for any number of reasons, including bankruptcy, insolvency, simply leaving my home for 30 days, or erecting a structure.

I understand that just because something is in an agreement does not mean it is legal. It is paramount to me that I keep my house – is my mortgage at risk from filing a consumer proposal?

Posted from: Ontario

Questions

One Response to “Can a mortgage be cancelled?”


January 31, 2009 at 12:11 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Typically there is no impact on someone’s mortgage when a consumer proposal is filed. We do an extremely high percentage of proposals compared to many trustee’s and I have seen people have trouble renewing mortgages with new institutions, but never a mortgage canceled in the middle where there is a good history of payments being made on time.

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