My husband and I cosigned a mortgage for my son. He has defaulted on his mortgage and it has been sold through foreclosure. This house is CMHC insured. The house sold for $90,000 less than the mortgage is for. Now what happens? We understand the CMHC pays the mortgage to the Bank, what happens with this $90,000 deficiency?

You must make sure when telling the agent at the bank that is doing your deal that you do not want to pay multiple CMHC fees. If they over look thsi it will costs you thousands. If done correctly, you will only pay CMHC fees on the difference between the new and current mortgage being PORTED.

Powered by

I recently applied for a mortgage and was turned down because i needed default mortgage insurance and when the bank applied for it, i was not approved(i had less than 20% down payment). said bank only uses cmhc as a source for the default insurance. i managed to get enough, through a gift from a family member for a 20% down payment and so i went to a mortgage broker. first lender turned me down. second lender still wanted deafult insurance which the broker again tried cmhc and was denied without a co-signer. he is trying lender number #3 with a different company for the insurance. five years ago, i declared bankruptcy when i had breast cancer and couldn't pay my bills. three years ago i was discharged and have had loans that were paid perfectly since then. the broker said my credit score was 674 but i am thinking he may have made a mistake because otherwise, i wouldn't be getting turned down. what's the chances of going back to the bank with my 20% and getting approved?

I don't know, but I had a discharged bankrupt woman get approved for a mortgage, so it is possible. What are the lenders worried about? Would your debt to income ratio be too high? Are the carrying costs too much (including some heat and taxes)? Have your mortgage broker provide more information as to the reasons - then you can more likely find a way to remedy them.