Bankruptcy Canada - House
Bankruptcy Canada Questions & Answers
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Anonymous |
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January 29, 2010 |
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Hi there, I am considering foreclosing on my house. Do you just walk away or could you explain some of the ramifications to me? Thanks.
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Karen
Alger & Associates Inc. - Alberta Bankruptcy Trustee |
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January 29, 2010 |
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A foreclosure is a legal action that a mortgage company will pursue if you have not paid your mortgage. Generally if you become 3 payments in arrears they will have their legal department proceed to court for an order to sell your home and to have you vacate the property. Oftentimes if the mortgage company suffers a loss on the sale they will have the loss paid by an insurance company such as CMHC and then CMHC will pursue you for the balance. You will have a foreclosure on your credit report as well. A bankruptcy can discharge the CMHC debt but a foreclosure will remain on your credit report for 7 years.
Karen Rideout
phone: (403) 296-2973
Alberta Bankruptcy
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This site provides free information about personal bankruptcy in Canada and personal bankruptcy alternatives in Canada, including answers to common personal bankruptcy questions.
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