FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

This field is hidden when viewing the form

Source

How can we help you?

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Comments

This field is for validation purposes and should be left unchanged.

Select Trustee By Province

Can a mortgage be cancelled?

I am about to file a consumer proposal, and am midway through a 5-year mortgage. I have made all my mortgage payments on time, and will continue to do so. My mortgage broker has told me to be careful, because the company that wrote my mortgage has gone bankrupt and is trying to dump high-risk mortgages.

My question is – the boilerplate mortgage agreement says that the mortgage can be cancelled for any number of reasons, including bankruptcy, insolvency, simply leaving my home for 30 days, or erecting a structure.

I understand that just because something is in an agreement does not mean it is legal. It is paramount to me that I keep my house – is my mortgage at risk from filing a consumer proposal?

Posted from: Ontario

Share this post:

X (Twitter) Facebook LinkedIn Email

One Response to “Can a mortgage be cancelled?”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

Typically there is no impact on someone’s mortgage when a consumer proposal is filed. We do an extremely high percentage of proposals compared to many trustee’s and I have seen people have trouble renewing mortgages with new institutions, but never a mortgage canceled in the middle where there is a good history of payments being made on time.