A mortgage is a loan agreement which requires you to repay the loan with interest and which also gives the lender (the mortgagee) a claim on your house if you don’t repay.
If you miss a mortgage payment, that’s a default under your mortgage. When you default, the full amount of your mortgage becomes payable immediately if the mortgagee wishes, and the mortgagee has the right to collect the money owing either by suing you on your promise to repay or by taking steps to seize your home
If you stop paying the mortgage on your home entirely, you will be in default of your obligations. The financial institution will then have two choices:
To sell the building under judicial authority: In such a case, you will be responsible for any losses that the Bank may suffer as a result of the sale.
To sell the building: In such a case, it will erase your debt to the financial institution. This second choice is always more advantageous, because you are released from any obligation to your financial institution.
If you’re in this position, you should consider filing bankruptcy or making a consumer proposal. If you do that, your other debts will be taken care of and you might be able to afford your mortgage. And yes, you may be able to keep your house even after filing bankruptcy. It all depends on how much equity you have in the house.
If this sounds like an option for you, please contact our office today. We offer free initial consultations and are open late and on weekends to meet your needs.
