Upside Down Mortgage

Mortgage Default Canada

Question: What access to CDN assets does a US mortgage company have when a Canadian citizen defaults on a US mortgage?

We own a property in Florida that unfortunately does not make financial sense to try to keep. We will likely walk away from the house and default on the mortgage. What access will the mortgage company have to my assets here in Canada, and what are the possible repercussions?
Thanks very much.

Answer: I would ask an attorney this question. Typically, most states have laws that require a mortgage company to only one solution for the mortgage. If they opt to foreclose on the home, then any other option may not be viable. For example, here in California that is what happens. A home can either be foreclosed on as the only remedy or the mortgage company can release the lien on the home and go after the owners other assets, but not both options together.

Again, contact an attorney about this. I would not give advise on this and certainly would not accept any with the person holding a valid law degree, specifically in real estate and foreclosure laws and preferably in both American and Canadian Law.

Good luck

Chris Newell's 'Your First Home' Liz Sanchez Clip 2

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!