I have a client, I'll call him Mr. X, that through a series of unfortunate events, finds himself with horrible credit and Revenue Canada judgements just as his mortgage is coming up for renewal. If we cannot find a mortgage lender to finance him he will either have to sell his home, or face foreclosure!
The good news he has built up some substantial equity in his home. This is his only bright spot. I may be able to find a Private Lender that will help him keep his home, financing up to 75% of the appraised value. The interest rate will be high, but it beats forclosure or having to pay real estate fees and then have to pay rent.
I hope my friend, Ken Wood, at Promediate Debt Solutions will be able to help him negotiate down the $30,000 he owes Revenue Canada.
I will update you as things progress.
Subscribe to:
Post Comments (Atom)
Hi James. Nice blog! Maybe blogspot is a better tool than wordpress...hmm. I read your last blog about your client Mr. X. Wow, that's a tough one to help out on. CRA does not like to negotiate off the debt, while they will negotiate payment arrangements. By the time someone has a CRA judgment against them there are severe penalties added. I am usually brought in "before" judgment to negotiate to avoid the same. In the case of Mr. X, CRA already has judgment so they won't want to bargain and they know he won't threaten to go bankrupt due to having to lose all that equity in his house. Under a bankruptcy situation he'd be most likely required to liquidate the equity for the benefit of creditors. He needs to negotiate a repayment arrangement with CRA now to get that issue put to bed so that he can report to his mortgage provider that this issue is resolved. There are consequences for not keeping up with your creditors....regardless of the reason. Ken
ReplyDeleteUPDATE:
ReplyDeleteMr. X has a hard decision to make. Due to horrible credit, we were only able to find Mr. X a mortgage through a Private lender. Private lenders have high interest rates and significant fees, however they are often a great short term solution for getting out of a bad situation.
Mr. X, after getting advice from his friends, has decided to try to sell his house on his own through Assist To Sell through their discounted program so that he doesn't get hit with big real estate fees. Assist To Sell does have a great program, however due to the home facing forclosure, I am very concerned that it won't sell in time because it is not being marketed through MLS where it would get greater exposure.
Mr. X said he is going to move his family of 6 in with a friend's family until school is finished in 5 months. I hope they are really good friends since that is a lot to ask of someone.