How is a cosigner on my mortgage impacted if I file a Consumer Proposal?

March 4th, 2014 by Questions

Hello, I am considering a consumer proposal. I have a mortgage of which my parents are cosigners. I also have a unsecured loan with the same bank that I have my mortgage with. If I file a consumer proposal am I at risk of losing my house? and will the process impact my parents negatively. They cosigned on the mortgage only. Thanks, Posted from: British Columbia

Questions

One Response to “How is a cosigner on my mortgage impacted if I file a Consumer Proposal?”


March 04, 2014 at 12:10 pm, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:

The loan secured by way of mortgage on the house does not have to be included in a consumer proposal. As long as the proposal takes into account any equity in the house and the house does not then have to be sold to satisfy the proposal there is likely no negative effects on your parents for co-signing the mortgage. If there is no realizable equity in the house and the house goes into foreclosure your parents may be called upon to pay any shortfall.

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.)