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house risk

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”

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.