Mortgage defaults have been in the press a bit more as of late.  In the link that follows, lawyer and Realtor, Brian Madigan, offers up suggestions for “Putting the Brakes on a Power of Sale.”

************* On a related note, there’s been publicized cases lately where subprime borrowers have had perfect mortgage repayment histories, but are not being offered renewals.

In many cases, it’s because subprime capital sources have dried up and lenders don’t have money to lend, even if they wanted to.  It’s no fault of the mortgage company.  Most would love to be able to lend again in the high-margin subprime market–if they could.

Examples of lenders who are currently not offering subprime renewals (at all, or to some extent) include:  Accredited, First National Excalibur, HSBC Finance, GE Money, Resmor, and Xceed.  Some of these lenders are out of the Canadian market completely.

Only a small number of Canadians are affected by all this, but for those who are, it’s a scary position to be in.  If this is your situation, and you are facing foreclosure because your lender won’t renew you, there may still be some limited options.  For another subprime or private lender to rescue you, however, it’s got to be a solid deal for them.  Among other things (and depending on the lender):

• The property must be decent and in a good location
• You need to have shown the ability and willingness to pay your bills for a period of time
• You need adequate employment
• You need enough equity
• etc…

For the best advice, consult with a mortgage planner who specializes in subprime financing (many don’t).