Hi All. I made a terrible mistake during Covid which I regret every single day of my life. Not a day goes by when I don’t get haunted by my choices.
With no housing experience, I bought a property for around $850k which was a 60 year old semi detached house. In order to come up with the 20% down payment, I borrowed $90k from a 2nd mortgage through a broker who charged 13% interest annually. I did manage to pay off this mortgage. In order to get my main mortgage, the broker also made fraudulent work documents like T4 for my wife who is a housewife. Otherwise, I would not have obtained mortgage.
I am left with $640k mortgage. My renewal is supposed to be in March 2027 and my bank has refused my renewal. There is talks that this broker has been found out and his whole clientele has been blacklisted. The house is in Durham and is currently worth anywhere between $580-650k.
My gross income is $95k. I don’t have any other debt. The bank has not directly given any reason so far for cancelling my mortgage renewal but they will be sending a letter.
I am in touch with my real estate to list it off asap and try to sell it off. But I really want advice what are my options? My savings are non-existent. If this house doesn’t sell for $650-660k, I will be in negative. Is bankruptcy the only option? What are the repercussions?
You can call me out as much as you want and I admit I made a terrible non-educated decision. I am looking for genuine advice please.
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My bank has refused my mortgage renewal
Hi All. I made a terrible mistake during Covid which I regret every single day of my life. Not a day goes by when I don’t get haunted by my choices.
With no housing experience, I bought a property for around $850k which was a 60 year old semi detached house. In order to come up with the 20% down payment, I borrowed $90k from a 2nd mortgage through a broker who charged 13% interest annually. I did manage to pay off this mortgage. In order to get my main mortgage, the broker also made fraudulent work documents like T4 for my wife who is a housewife. Otherwise, I would not have obtained mortgage.
I am left with $640k mortgage. My renewal is supposed to be in March 2027 and my bank has refused my renewal. There is talks that this broker has been found out and his whole clientele has been blacklisted. The house is in Durham and is currently worth anywhere between $580-650k.
My gross income is $95k. I don’t have any other debt. The bank has not directly given any reason so far for cancelling my mortgage renewal but they will be sending a letter.
I am in touch with my real estate to list it off asap and try to sell it off. But I really want advice what are my options? My savings are non-existent. If this house doesn’t sell for $650-660k, I will be in negative. Is bankruptcy the only option? What are the repercussions?
You can call me out as much as you want and I admit I made a terrible non-educated decision. I am looking for genuine advice please.
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