Would we loose our house if we filed a consumer proposal?

April 8th, 2009 by Questions

MY HUSBAND AND I ARE CONSIDERING A CONSUMER PROPOSAL. aRE CURRENT MORTGAGE (1ST) IS 26O,00.00.ARE 2ND IS 42,000.00. WITH NO EQUITY IN OUR HOME CAN WE KEEP OUR HOME?OUR 1ST MORTGAGE IS UP FOR RENEWAL IN MAY 2010 WITH GE MONEY WHO ARE NO LONGER DOING MORTGAGES IN BC, HOW WILL WE MANAGE TO GET A NEW MORTGAGE WE WANT TO STAY IN OUR HOME?

Posted from: British Columbia

Questions

One Response to “Would we loose our house if we filed a consumer proposal?”


, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

As for whether or not you can keep your house. This is really up to the lenders and doesn’t have much to do with the filing of a proposal as they have to be willing to continue to provide the financing. While this isn’t likely to be a problem immediately the difficulty you will encounter is when the mortgages come up for renewal. When these mortgages are renewed you will have to qualify for a new mortgage. This qualification process is based partially on income, partially on cash flow, partially on credit rating, partially on relationship with the bank and partially on your debt to income ratio and various other financial ratios.

So it will be a challenge to get a new mortgage.

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