Quote:
Originally Posted by zyzzjr
Thank you for the post. It was very helpful. I was wondering if you could clarify a little bit in this part.
If the mortgage was insured (CMHC, Genworth) they can enforce the judgement.
If my mortgage was insured by cmhc and I default, does that mean they pay off the rest of my debt and I'm free to go? Or does that mean they would be the new owner of my debt and I owe them the rest of the money and that they would eventually come after me to garnish my wage until it is paid off? Thank you again.
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They own the debt and they will come after you. Many people believe this 'mortgage insurance' is for them when it is really for the lender.
I had a friend go through this were his rental turned into a grow op by the renters and destroyed the house. He couldn't rent it without a ridiculous amount of repairs. It foreclosed and a few years later CMHC or one of them came after him. His only choice was bankruptcy at the time.