So I guess its true-Nothing ventured = Nothing gained!
Thank-you for your great advice.
We have 8 more months to go, and this kind of help, gives us hope.
Well Done!

Hi Matt!

The information you provide is truly useful and reassuring!   

My situation is similar to lightmejohnny's - I have recently started a five-year consumer proposal, and I am almost three years through a five year mortgage. I will still have more than two years of my consumer proposal remaining, when my mortgage comes up for renewal in 2011.
Before I filed my proposal, I went to see the AMP who arranged my mortgage. She was very negative about the proposal and said things would be better for me at renewal time if I went bankrupt instead (because I would be discharged by renewal time). I can understand what she meant, but in the end I chose the proposal because my situation was not nearly bad enough for bankruptcy to be a necessity. My trustee, and many others I have spoken to, suggested that it I would likely receive an auto-renewal despite my proposal - and that even if I did not, I should have no trouble finding someone to re-finance my mortgage at that time.

I am uneasy about what will happen at renewal time, however. My mortgage company, GMAC, has (despite my perfect payment history) been sending me rude notices and demanding service charges from me regarding my proposal. My trustee has told me that their demands are against the law (against the Bankruptcy and Insolvency Act), and that I should not comply. He is currently siccing the law on GMAC. I know that GMAC can't cancel my mortgage because of my proposal (despite what they say), but I am afraid that by renewal time they will be so P.O.'d with me that they will not auto-renew.

In answer to some of the questions you have posed to lightmejohnny, here are some facts of my particular situation:

1) House is worth about $120K, and at renewal time there will be $25K equity.
2) I am self-employed with provable income (years and years of tax returns showing that I steadily make $35K per year).
3) Current mortgage is with GMAC Canada - payment history is perfect. It is a standard 5.25% interest five-year mortgage, at 25 year amortization.

I am most interested in what my options would likely be should GMAC not want to renew me.

Thanks, Matt!
~Wendy

Me again!

Just in case anyone else is following this thread, through discussions with Matt (above) and other professionals, here is what I have gathered:

Although getting a NEW mortgage (re-financing your home) at renewal time with a new mortgage company might be tricky if you are currently still paying a proposal, it is customary for your current mortgage company to auto-renew your mortgage as long as you have been making your payments on time.

Although my own mortgage company, GMAC, has been giving me a hard time and trying to levy service charges related to my proposal, they will likely still auto-renew when my mortggage comes due, as long as I have been paying as promised. I bet they are just trying to scare me so that I will accept a higher interest rate without complaining!

Regarding my previous question to Matt, it seems that mortgage lenders customarily need CMHC (or Genworth) mortgage insurance on mortgages above 80% of the house value. And CMHC, even more-so than the lenders themselves, has certain credit requirements for all new policies. If you are looking for a new mortgage or a re-finance with a new company, and the mortgage will be more than 80% of the house value, CMHC will be insuring the mortgage and will want you to be two years out of your proposal, with one year of re-established credit. They must do a credit check even if you are "transferring" your mortgage to a new lender.

Now, that's for a new mortgage or a transfer (re-finance). When an existing mortgage is auto-renewed, CMHC insures the renewed mortgage under its ongoing policy, and does not worry about checking credit reports. This is one of the reasons that your current mortgage company finds it so easy to auto-renew you, and why they know that if your credit is blemished but your payment history is good, you will remain their 'loyal' customer once they auto-renew you. They know that, for now, running to the competition would be difficult for you.

So, if you are currently in a mortgage situation, have made a proposal, and are making your regular mortgage payments, you can expect auto-renewal - but don't be surprised if they increase your interest rates!

If you have an unusual situation where you know you will be seeking a new lender at renewal time, try to make the extra payments or source the funds so that the re-financed mortgage will be under 80% of the house value, so you can avoid CMHC insurance and their credit requirements. This will allow more lenders to entertain your business.

AND - although I'm not affiliated with Matt (mwieler) in any way, I recommend him as a source of information, and of mortgages. 

~Wendy

Are there any lenders who would lend to a second time bankruptcy person.

First bankruptcy was in 1997 second was in 2005 discharge 

if they will both be on the report for 14 years, would the first drop off after 2011? and then enable us to get a mortgage?

we were told by a broker we may as well give up the hope of owning, it was quite discouraging and we are looking for some sort of hope in the situation