house risk
May 10th, 2009 by Questions
If i file a consumer proposal as a way to pay off my credit card debt is there any way my home could be at risk? I got one of the last 40 year morttages in 2007,I paid 370,000 with no money down, and borrowed cmhc fees, so I actually owe more than I paid for the house, or what it is worth in the Victoria realestate market.Also when I renew in 3 yrs will I have any problems, or are they obligated to continue carrying my mortage.
Posted from: British Columbia
One Response to “house risk”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
May 11, 2009 at 8:37 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
With the filing of a consumer proposal there is no automatic vesting of assets as there is in a . So your house, especially with no equity, is essentially not affected by the filing of a consumer proposal.
However, the bank is not obligated to renew the mortgage in 3 years. While they often do without any troubles, they can re-evaluate whether or not you qualify and with a negative credit rating that could make things a little more difficult for you. In most situations as long as you have a good payment history over the term of the mortgage it isn’t a problem, but there is no guarantee.