September 16th, 2012 by Questions
My Spouse and I are in our mid-80’s and have a collateral Mortgage which we are paying on monthly. Subsequently we also became enmeshed in a Second Mortgage through a Finance Company on the same property. Which of these has priority in terms of security as we now appear to be in a ‘Bankruptcy’ as well as in a C.P. dilemma! The Finance Co. has us tied to a 84 month Mortgage! How could 80+ qualify for a Mortgage in this kind of situation?
Posted from: Ontario
One Response to “Two Octuagenarians”
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September 16, 2012 at 12:27 pm, A licensed trustee said:
I completely agree with your question/comment about being approved for the mortgage, but didn’t you have to apply for it in the first place? I doubt the lender called you and said “we want to give you a mortgage” – I assume you went looking for it…
The bank would approved your for the mortgage based on the value of your home versus the value of the mortgage. As longas they are confident the house may be sold for more than enbough moneyt o pay off the mortgages, the rest of the factors (your age, pension income, etc) are secondary.
I bet whomever approved your mortgage thought they were doing you a favour…