I own a condo in Edmonton that I recently moved in to. I had it rented out for approx 3 years. During that time I jointly purchased a house in another city with my boyfriend and moved in with him. We recently split up and he is not making the mortgage payments on the house. I cannot help because I am paying my mortgage here on my condo and my salary is less that the house payments in the other city. If the house goes into foreclosure, will I also lose my condo here? How can I protect myself? I owned this condo long before the house was purchased. The condo is in my name only and my credit rating was excellent, til now.
this condo long before the house was purchased. The condo is in my name only and my credit rating was excellent, til now.
Mortgage
posted by Questions @ 
At March 4, 2009 |
8:45 am
, Barton Goth, Trustee in Bankruptcy Said...
Likely there won’t be a direct impact on your condo here. As for how you can protect yourself, you could try to remove your name from title to the house and from the mortgage, but that is doubtful that the bank would even consider it, especially if the house is in a deficit position. Essentially when you have signed on the mortgage there really aren’t any options to protect yourself. Either you make the payments or the house will be foreclosed and your credit will be impacted negatively. Additionally, once the house is foreclosed on, if there is a shortfall (i.e. amount still owing if sale proceeds insufficient to pay the balance of the real estate costs, legal costs, foreclosure costs and the balance of the mortgage) you would be responsible that this shortfall be paid. It is at this point you may have to consider the filing of a bankruptcy or proposal, depending on your ability to pay this shortfall.
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