It is so important to make sure you are being educated on the mortgage product you are being offered. We have a situation now where a home seller has an XXX mortgage. The home is in the starting stages of foreclosure but their realtor has found a buyer. Financing complete on our end for the new buyer and the deals goes to the lawyer. The seller has to pay $11,000 out of pocket to make up the difference from the sale to what she owes XXX. The seller confirms she has this and ready to close. Meanwhile our client has gave notice to the rental, packed all his contents and is ready for moving day. Lawyer goes to request funds and finds out that the seller has a collateral mortgage with XXX which gives them to power to call all debts owned by this client. Down to the final hours and now the seller must come up with $9500.00 to pay off a visa. This could potentially kill the whole deal. The seller was not aware that having a collateral charge mortgage would give the bank this power and now may lose the house to foreclosure. It is a very sad story and unfortunately all due to last of education provided by the lender. Typically most of the big 5 bank use Collateral Charge Mortgages, we have many lenders who do not. Call us to help guide you through the process and ensure you know what type of mortgage you are getting.
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