Can’t afford mortgage!
Question: I purchased a home six months ago and now due to cutbacks at work and partner going in a seperate direction we can not afford to keep it.
We want to sell but I’m confident we will not get what we paid and here is my question.
Can we sell the house when I know I won’t get enough to pay the mortgage, do I need to call the mortgage holder or CMHC to inform them and make some sort of deal to cover the shortage?
Any good advice is welcome.
Answer: Yes, you should discuss this with your lender. The purchaser can only take possession of your house if your mortgage is discharged. If the sale proceeds are not sufficient to repay the mortgage, it is possible that the lender will not allow the sale to be completed. Therefore, they should be informed in advance, and in some cases they will allow the sale to go through so that they can at least recover most of their money.
If there is a shortfall it is likely that they will then pursue you and your ex for the shortfall, so you will need to consider your options for dealing with that as well.