Rental Property and a residence
November 10th, 2008 by Questions
My wife and I have personal loans and debts we cannot service. I lost my job and her business is failing. We are contemplating bankruptcy or a consumer proposal. We jointly own a residential rental property as well as our own residence. We have a mortgage on the rental property that is higher than the value we could sell it for. The rent we are receiving does NOT cover our expenses including the mortgage. We would like to walk away from this rental property, allowing the mortgage company to seize it. The same mortgage company holds the mortgage on our residence as well. We have about $45K in equity on our residence. Can we keep our residence and walk away from the rental? Could the mortgage company force us out of our residence? Will they prevent us from doing a consumer proposal?
Posted from: Ontario