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after bankruptcy

I finished my bankruptcy and was discharged. They did not take my house because I owed 182,00 on the house and they valued it at 170,000. There were extensive repairs that needed to be made on the house so they did not take it. Now 6 months after being discharged I can no longer fulfill my obligations on the mortgage. I have tried to fix the urgent home repairs but am in no position financially to continue paying the mortgage. What are my options? We can`t sell the house for more than 160,000 since the market has declined and we owe 180,000 on the house. We can move in with relatives but what happens to the house and the mortgage owed?

Posted from: Ontario

One Response to “after bankruptcy”

A licensed trustee said...

The basic question is can you afford to keep the house? If the answer is yes, then given the current market and state of the house (as you describe it) you should ride out the storm.

If you cannot afford to keep the house and you can’t sell it then if you surrender it to the mortgage company they will sell it at a loss and then come after you for the shortfall after it has been sold. If you had insurance with CMHC then after the mortgage company demands payment from you for the shortfall, CMHC will pay them out so you’ll be dealing with CMHC. CMHC is not a well run organization – it may literally take them years to contact you for the shortfall.

If the mortgage was not insured then you should expect the mortgage company to sue you if you are unable to pay them when they send you the demand.

The implied question in your text “is there anyway to include this in the bankruptcy you have already completed?” The answer is no. Sorry, but this is something that you have to deal with yourself (after the fact).