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Potential Sub-Prime Disaster ends up a happy life line!
A number of Sub-Prime mortgages lenders entered the Canadian market 5-6 years ago, and have since closed funding operations. Of course, no borrower is so lucky that their mortgage disappears when the lender decides to stop doing mortgage business.
The mortgage porfolio may be sold to another lender, a trustee may be administering the portfolio, the lender's parent company may be administering the porfolio from their home office location. But, payments continue to come due.
And, there is a good chance that when the mortgage is up for maturity- the lender will be looking for the whole remaining balance, at the maturity date.
Failure to pay the mortgage at maturity date is missing a payment that is due. The fact that it is not a couple thousand dollars, but a single payment of HUNDREDS OF THOUSANDS OF DOLLARS due on one day, is a serious.....I'm heading towards foreclosure...type of problem.
Waiting, hoping for a miracle, is not the solution to this looming doom.
Talk to a mortgage professional now about your options, before time runs out for you.
A Sub-Prime mortgage was taken out years ago because there may have been a credit issue or an income issue that prevented you from obtaining "normal" high ratio, default insured mortgage money.
See what you can do now to make sure you qualify for default insured mortgage money when your mortgage is called for full repayment- even though you have made all your payments on time!
A recent case resulted in our client saving their hard built credit rating, and replaced a sub-prime mortgage with a prime mortgage.
There may be a life line for a situation that looks like an approaching disaster. You have to act fast and be doing the right things now to avoid the pain that is coming.