When a contract ends?

[Mizfrizzy]

Hi there,
I'm hoping to find some information that will help me point my elderly neighbour in the right direction.
In 2001 she took a 1 year interest only mortgage. The contract ended, she was never presented with a new one or told that the balance was due. She's continued making monthly payments for the 16 years since the contract expired and the lenders have kept accepting payments.
To date, she's paid 40,820.00 on top of the whole amount the mortgage was for.
I don't have the slightest idea what kind of help she needs, if any.
Someone suggested she just stop paying but I'd hate for her to lose everything.

 

[Tina Myrvang]

Get a lawyer. She will have to fight them and the best way is to have a lawyer on her side. Where is this? What province?

 

[Matt Crowley]

Mortgage broker is a better first stop. David Niven in Edmonton is a great guy to talk to.

 

[Mizfrizzy]

Hi there,
Thanks for responding. We're in Ontario.
She just seemed to think she'd just pay them until she dies.

 

[Michel Lafleur]

I'd suggest getting a real estate lawyer involved, and have a conversation with the lender to see how this transpired.
Is there a clause anywhere in the original contract that says it will continue past the original term until other arrangements are made?

 

[Thomas Beyer]

Hi there,
I'm hoping to find some information that will help me point my elderly neighbour in the right direction.
In 2001 she took a 1 year interest only mortgage. The contract ended, she was never presented with a new one or told that the balance was due. She's continued making monthly payments for the 16 years since the contract expired and the lenders have kept accepting payments.
To date, she's paid 40,820.00 on top of the whole amount the mortgage was for.
I don't have the slightest idea what kind of help she needs, if any.
Someone suggested she just stop paying but I'd hate for her to lose everything.

Look at fine print of mortgage. She can likely get mortgage off title if paid off, but depends on actual mortgage details missing in this post. She should get a lawyer involved with factual evidence of payments. She could refi or discharge mortgage potentially. But there may be penalty clauses.

Needs more facts for a proper answer. She needs to get a lawyer involved most likely.


Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com

 

[Dhra Sharma]

Good to know