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Consumer proposal & Mortgage renewal

Hi, If a person has to file a consumer proposal, but wishes/hopes to keep the mortgage and home going, but the renewal is up while he is still paying the proposal. What if the bank does not renew it, and because of the R7 credit rating what if he can’t find another bank to take the mortgage? Does the home get reposessed from the original lender, if no one is willing to let him take a mortgage and there is nothing else the person can do? I have some equity, about 10K out of a 36K mortgage, so I own around 25% of my home.
Thank you for any insight.

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One Response to “Consumer proposal & Mortgage renewal”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

While it may be a little more difficult to find a lender, there are a number of institutions that will lend in almost every circumstance. Although you may have to pay a slightly higher interest rate, this is often a preferred way to protect the equity in your home. If for what ever reason you are unable to find a lender the most logical procedure would be to put the home up for sale, upon receipt of funds pay out the existing mortgage and use the remaining funds for whatever purpose fit your situation best.