With some luxury homes purchased in 2014 going underwater, perhaps the resident realtor(s) of beyond can show us what's available on the market at 20% below the previous sold prices.
http://www.cbc.ca/news/canada/calgar...sing-1.3430867
With some luxury homes purchased in 2014 going underwater, perhaps the resident realtor(s) of beyond can show us what's available on the market at 20% below the previous sold prices.
http://www.cbc.ca/news/canada/calgar...sing-1.3430867
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Last edited by Sugarphreak; 08-15-2019 at 03:02 PM.
Bet you theres nothing 20% off except perhaps ex grow ops, and even them (atleast the ones ive seen on mls are still not 20% off)
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People still seem to be out to lunch in all the neighborhoods/properties I've looked at. A lot of the ones that were picked up in 2011 downturn are still being listed 10%-20% higher and the sellers aren't budging much at all. I'm sure somethings got to give eventually, but I've still seen a couple homes sell well above the purchase price in 2011 with no renovations.
I think it's the $2M houses that are now worth only $1.6M that people are walking away from. I remember in one of the thread that many high end home owner leverage the heck of their house to invest in other areas for better returns than 3% mortgage.Originally posted by nzwasp
Bet you theres nothing 20% off except perhaps ex grow ops, and even them (atleast the ones ive seen on mls are still not 20% off)
Since mortgage like that isn't CMHC covered, banks/lender will have to deal with it. And since it's no recourse, the rich people who walks away may still have millions of dollars in other assets or cash so they'll just make it bank's problem. And who needs credit when you have crap load of cash.
And if enough of these goes, it may impact the health of banking system as a whole in Canada.
Last edited by Xtrema; 02-08-2016 at 03:41 PM.
So let me get this straight. Let's say a highly leveraged person had taken away a HELOC on a home like this, say $400000 and invested it elsewhere etc, they could just drop their keys off and not only are they not responsible for the $1.6M mortgage anymore but the HELOC too because it's against the house?Originally posted by Xtrema
I think it's the $2M houses that are now worth only $1.6M that people are walking away from. I remember in one of the thread that many high end home owner leverage the heck of their house to invest in other areas for better returns than 3% mortgage.
Since mortgage like that isn't CMHC covered, banks/lender will have to deal with it. And since it's no recourse, the rich people who walks away may still have millions of dollars in other assets or cash so they'll just make it bank's problem. And who needs credit when you have crap load of cash.
And if enough of these goes, it may impact the health of banking system as a whole in Canada.
No recourse is awesome.
When I said leverage, I meant bigger mortgage at renewal. Like going from 50% equity back to 20%.Originally posted by ee2k
So let me get this straight. Let's say a highly leveraged person had taken away a HELOC on a home like this, say $400000 and invested it elsewhere etc, they could just drop their keys off and not only are they not responsible for the $1.6M mortgage anymore but the HELOC too because it's against the house?
I believe HELOC is recourse loan (but I could be wrong).
EDIT: Was wrong. HELOC is no recourse in AB and Sask. Owner could potentially walk away with $240K in the example I gave (65% HELOC of $400k equity).
Last edited by Xtrema; 02-08-2016 at 05:25 PM.
Know where else has no recourse? Arizona. Ooooh yeah.
Not really.Originally posted by suntan
No recourse is awesome.
It is technically no recourse but the fact that you walked away from a mortgage will still show up on your credit bureau report.