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Co-Borrowing on a Mortgage

If I Co-Borrow (Co-Sign) on a Mortgage with my Common Law Spouse and then later I opt for a Consumer Proposal is the house affected at all?

I have significant debts and am self-employed and am on the verge of having to bail myself out in some way. Preferrably not bankruptcy.

My spouse has a decent job and can afford the mortgage but needed me to co-sign in order to qualify as my credit rating was quite good at the time. How things can change.

So I am officially a co-borrower on the house but can no longer afford my personal debt. I’m terribly worried about my personal finances affecting what is essentially her house.

Please advise.

One Response to “Co-Borrowing on a Mortgage”

Barton Goth GCO Bankruptcy Trustees said...

As long as the mortgage payments are up to date and you have a good relationship with the lending instituion you shouldn’t have any trouble.

You will find that most trustee’s will actually insert a clause into the proposal that will verify that the mortgage will contine to be paid as originally contracted so that when the lendor reads the proposal the know there is no need to panic.

Of course you are best to review this with a local trustee local trustee just to ensure that local practices are the same everywhere, but realistically I don’t see any need to be concerned.