What to do with mortgage/home payments

[ercchry]

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Yea one day when we grow up we can have a civilized conversation. Not today.

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"welcome to Alberta, only place with no recourse mortgages (can’t be insured, lender cannot go after any other asset than the house" ........ was what you pointed out explicitely.

What you SHOULD have said is:

"welcome to Alberta, only place with no recourse, REFINANCED mortgages"

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Your immaturity aside, it is an interesting idea though.

Nah, I think everyone is sick of your faux expert of all topics bullshit. If you can’t read the whole post I can’t help you. If you know nothing of the B-20 regulations I also can’t help you. We get it, you talked to one rich guy once that buried gold in his yard and absorbed all his knowledge. Like Jesus Christ, you come in here and try to tell me I know nothing about what I do for a living and how the fuck do you think I’m going to react when I know I only speak on topics where I am 100% factual and can back it up with cited sources

[suntan]

@ercchry I thought that even though Alberta is still a no-recourse province, walking away now affects your credit report. Is that not true?

[ercchry]

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@ercchry I thought that even though Alberta is still a no-recourse province, walking away now affects your credit report. Is that not true?

If the mortgage reports, yeah you will see a drop in score for sure if you stop paying (hence the “purchase new home before these next steps” comment as once you have an M9 “foreclosure” on your report it’s very unlikely you will get lending again till that’s off

[suntan]

So I can't just take the money and run?

[ercchry]

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So I can't just take the money and run?

Well yeah, you can that’s the whole point haha, but I mean lenders dont have to extend the ability to borrow again if you do. In every other province they can come after for the difference... so you’d actually have to declare bankruptcy to avoid it. Any insured loan has the same recourse too

Saskatchewan has some weird stuff too... like if you put a property into a corp name then the lender no longer gets first rights to the property... all assets get pumped into the same pile for creditors so their 1st position on title is meaningless

[gwill]

Can you clarify. If you default on a mortgage the banks wont come after your other properties in Alberta?

Or is that only if you refinance as you mentioned? I've always assumed they'd take everything you owned.

[ercchry]

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Can you clarify. If you default on a mortgage the banks wont come after your other properties in Alberta?

Or is that only if you refinance as you mentioned? I've always assumed they'd take everything you owned.

Has to be an uninsured loan, so rental, $1m+ purchase price, greater than 25yr am, refi, etc... but post B-20 rule changes. Insured or insurable (bulk insured) has recourse, uninsured does not. So the only asset they can go after is the property itself. This also means if you did pull every dime out that you can you still would have equity of at least 20% as of today’s value so you would be banking on a pretty significant drop for this to benefit you due to also the implications on future borrowing abilities

[Manhattan]

OP - Let's not get too carried away. Yes things are bad but underwater bad is whole other story. You can do both by the way... lots of banks offer you to make lump sum payments to pay down your mortgage in a "cash account". Up to 20% of the mortgage in any given year. When and if you need it for a rainy day or to invest you just make a request to withdraw and it takes about a week to get the cash deposited into a savings account.