Friday, February 6, 2009

Do you have an EXCEED, GE Money, Accredited, or Home Trust mortgage?

If you currently have an Exceed, GE Money, Accredited, or Home Trust mortgage in place you should call me or another professional Mortgage associate ASAP and discuss your future plans for this mortgage product. Recent fluctuations and changes to the mortgage and credit granting market in Canada has left many mortgage holders at risk, and only those who are proactive and prepare for this situation will not be inconvenienced by this.

In the past few months, several of the 'high risk' mortgage lenders have withdrawn from the lending market or have altered their lending practices to no longer offer mortgages which fall into the 'high risk' category. Among the first products to disappear was mortgages for non-owneroccupied properties (rentals, second homes, vacation properties, etc), followed by conventional low document and no document products which were designed for self employed individuals. Several insured products of this type are still available however.

The problem arises when a client who holds one of these high risk loans (similar to a US subprime mortgage) comes up for renewal. Your current lender is under no obligation ro renew your mortgage when the term expires. In the case of these high risk lenders, there will be many mortgages not renewed in the next few years, as the lender has left the industry or changed their lending practices. Simply put, when your mortgage term expires, you will receive a letter asking for the full payment of the entire value of the outstanding mortgage or else face the foreclosure process. This will happen to you regardless of how strong your credit is, regardless of your repayment history, and regardless of how prepared you are for it.

If you have one of these mortgage, even if it does not come up for renewal for a couple years, you should prepare for that scenario NOW! If the mortgage associate who sold you that product has not yet contacted you, you should contact our office ASAP so that we can help you prepare. It is your responsibility to be proactive on this. Let us help you before a problem arises. Do not wait until the last minute or it will cost you thousands of dollars.

Here are a few of my favorite past articles from my Lethbridge real estate and mortgage blog you might have missed or wish to recommend them to a friend.

Common Financial Problems - Avoid these financial mistakes
Get Your Credit Score UP - Invaluable insight into your credit score
Mortgage Guidelines Get Tighter - Harder and harder to borrow money
Is Your Mortgage Company Out of Business in 2009? - What to do when your bank goes broke
What is wrong with MLS - Is your info being abused?
Survivor - Real Estate Edition - Let's vote a few more off the island

Robert May is a Realtor, as well as the broker and owner of Rainbow Realty of Lethbridge Alberta. He is also a licensed mortgage associate and financing expert with Canada First Mortgage of Calgary Alberta. He has been in the real estate industry since 1993 and offers full MLS real estate services to Lethbridge and surrounding area, as well as mortgage financing, refinancing/renewals, preapprovals, and home equity financing to Lethbridge and Southern Alberta. He can be found online at

Let me share my 15 years experience in the local Lethbridge real estate and financing market with you! It is the first step towards making a profitable real estate decision.

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