I Am in Financial Trouble and am Worried About Losing My Home

2010-09-22   minute read

Donna Carson

Bankruptcy

Based on your question, I am assuming that you have a mortgage on your home. In Alberta, if you are current or catch up on your mortgage, the lender can not foreclose on your home or stops the foreclosure.  If you are behind on the mortgage, it is only the lender who can vary any terms. Legal counsel may be able to help you stall the foreclosure while you work on a plan to catch up or find new financing. Even a bankruptcy will not stop a foreclosure.  A lender with a mortgage is called a secured creditor. Secured creditors have the right to realize on their security, even in a bankruptcy, if you are in default on the payments or any other terms of the mortgage. What you need to be careful of it whether or not this is an insured mortgage.  (EG:  CMHC, Genworth, AIG) If something ever does happen to the home, the lender will get paid from the insurer.  The insurer can they pursue you for the shortfall.   If it is not an insured mortgage, the lender can not sue you for the shortfall.  They can only take the property. Another question would be....is it my other debt that is causing me troubles?  If I could deal with that debt, would it free up enough money to stay current with my mortgage? Before the mortgage gets into trouble, or too far into trouble, I would recommend that you talk with one of our counsellors or Trustees about the specifics of your situation.  Let's see if there are any options out there that would help you before the mortgage goes into arrears.

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