My friend and I were arguing as to whether c.c comps can seize your home for unpaid debts. Even if your house is worth more than the debt. My friend used an example of a home worth $300,000 and a cc debt of $4000. I think that because your mortgage is a secured loan by the bank the cc comp wouldn't want the hassle. Any thoughts and bear in mind we are in,Ontario Canada and none of us are sure of how the law here works. Any thoughts as to this question

Cheers,


RedDragon

I believe you are right. I am not expert in Canadian laws, but I would think that like in the US, the most the CC Co. could do, if granted a judgment by the court, would be to put a lien on the house. I do know there are a few folks here knowledgeable in Canadian Credit law, so give it another day or so to see who pipes in.

Hello RedDragon,

RickJ is completely correct.

All they can do in Ontario is place a lien on your house.

They can't “take it away”.

Whether a mortgage exists on the house isn't really relevant. Although they would be second in line as the mortgage company would get first rights to the house.

Hi Capt.Forest thanks for yours and Rickj's responses. It's good to know I am right. In a follow-up to this question I found out that another friend of mine is in what seems to be the very same predicament. He is paying his c.c but he missed a few payments. A collection agency told him that they have been told by the c.c company to seize his house and sell. The collection company say although they won't get full value for his house that the will kick him and his family out as instructed by small claims court. Is the collection company employing scare tactics on my friend. He is still paying his monthly amounts to the credit card and he still receives the bills. Answers if you have any so I can relay them to him.


cheers,

RedDragon

Yes they are employing scare tactics. The only lien holder who can force someone out of their home is the primary mortgage holder. Even then, it would require foreclosure proceedings in a court before they could seize the property.

Hi,
I agree with the previous answer about "scare tactics". Some Collection Agengies are not very reputable... will try saying anything to collect money for their client.