How will your creditor know about the legal mortgage on your home? Through an address notice that is placed on all homes with a mortgage. The address notice informs mortgagees of any subsequent registration on their collateral (the house). When they receive the address notice, they will review your file and make a decision to either put you in default on your mortgage right away or review your file at the end of the term.
If the federal or provincial government exhausts all their options to collect, they will be able to obtain a federal or provincial court judgment which will then be recorded on your credit score. This is the “Public Records” section of your credit score. Once entered, the judgment can take 6 to 7 years to disappear and will certainly affect your ability to borrow. Even if you are not a homeowner, having a tax judgment may prevent you from purchasing a property.
If this is your situation or you know someone who could benefit from our help, take a few minutes to fill out our online form and we will be happy to put our 10+ years of experience to work for you!