Pleaser
Posted June 17th, 2010 in Real Estate, Real Estate Stuff | 
Strap On Your Boots
If Mark Carney has his way you can bet the walk down Vancouver’s real estate road is about to get more difficult.
According to Mark Carney, the world’s debt mule may be stumbling under a heavier load than first thought.
Being First
In a world of firsts, Jeremy Torobin of the Globe and Mail notes that Carney “became the first central banker in the Group of Seven to raise interest rates from recession-era lows” but also notes that Carney has “hinted that markets shouldn’t view another increase next month as a safe bet because measures to address Europe’s debt crisis and efforts to cool the fastest-growing emerging-market economies could weigh on the worldwide rebound.”
No Direction
As usual we are left to wonder how to plan out our lives. Should we buy that house? Should we commit to that 25 year mortgage or should we just say forget it and keep on renting?
Tough Luck!
Looking to our leaders of industry for a hint we come up with indecision. Left we are to ride it out on our own. After all, says Carney “in light of the scale and volatility of these conflicting forces, it should be evident that no particular path for monetary policy is preordained. ” That spells tough luck for those who were hoping against hope that things in real estate might be getting a little better and a little more clear.
For Sure
In a few words the only certainty you can be sure of is this. If you get a mortgage you can be absolute in understanding that the bank will insist that you make your mortgage payments on time or give up your home.
Simple Difference
One wonders why it is taking so much time to sort out this Euro mess? If the same rules applied as they do for us mere mortals and they don’t, it would be simple – pay up or give us your country as you strap on your boots and start walking.
I dunno if your “for sure” is really that sure. In the states (yes I know, we arent the states) the banks are giving people several months to make payments. I bet 5 years ago no one thought that would happen.
@davers
it is for sure but you are given every opportunity to undo the damage.
“You do not automatically lose your house. Lenders don’t want to foreclose if they don’t have to because it is expensive and takes a lot of time. A lender will probably not start to foreclose until two or three months after you stop paying. Normally, a lender will first send letters demanding payment. Then, if you don’t reply, the lender will usually start to foreclose and sue you at the same time.”
Note: I believe you can only walk away from your mortgage in Alberta. Thinking you can is Sask. as well but not certain.
See full details here – http://www.cba.org/bc/public_media/housing/415.aspx
http://www.yattermatters.com/real-estate/not-paying-not-simple/
http://www.yattermatters.com/real-estate/strategic-mortgage/
It is true you will have to pay eventually, I think the thing that threw me off was “make your mortgage payments on time or give up your home”.
You could be late and still be fine, but now I’m just splitting hairs. The bank will get their money one way or another.
@davers
I think you might find that the worst part of ‘being late’ with your mortgage payment is the affect it will have on your overall credit rating. The bank will be waiving credit red flags all over the place. That in itself will linger and cost time and money to repair.