Car Lease & Mortgage Renewal
I`m considering a Consumer Proposal but I want to be sure that my car lease won`t be impacted and that I can renew my mortgage in 4 years. I`ve read that typically, if you`re up to date on your payments then there won`t be a problem but how can I make sure that they won`t be impacted before I officially submit the proposal? I need my car for work and don`t want to lose my house … the reason I`m opting for a proposal versus bankruptcy since there is no real equity in my home right now.
There is nothing that can guarantee that you can keep your car or qualify for a mortgage in 4 years. However it is much more likely with a proposal than in a bankruptcy.
Specifically with respect to the vehicle, it can be written into the terms of the proposal that you will continue to make the required payments as originally contracted and in practice we find that the leasor’s prefer most people to retain these vehicles whereever possible.
As for qualifying for a mortgage, this will be more difficult but is definately possible (especially where you have a good history of making your payments on time, then your existing lender tends to focus less on your credit history report as they have their own history with you).