RE:RE:RE:Middle of recession is now.EdPaquette wrote: Yes I share those concerns. Mortgage repos shouldn't cost banks too much since debtors are still on the hook and can't walk away in Canada. For others who pay their mortgage, banks get bigger margins.
Mortgage holders can walk away, if the bank agrees to a minor settlement or the courts decide the bank has to suck up the loss.
It happens regularly and when push comes to shove, it mostly isn't worth the cost of taking them to court.
I know at least a half dozen folks that walked away from a mortgage/house and with very little effort were completely off the hook. One of them even has another mortgage on the go, after cleaning up his credit issues, such as credit cards/car loans.
Banks usally are and need to be flexible or they won't be in business for very long.
I will wait and see how they do after the numbers are crunched and reported before getting to excited.
POS is keeping us informed as to the NAV and it might be quite close at present.
I don't believe it's mortgages at present but more the worries with commodities and pricing.
Banks are involved in every aspect of the economy and they're quite good at what they do.
It's the PRIVATE LENDERS that I would be worried about.
I'm, not saying the banks won't bleed. They will but they won't go into extreme hemorrage mode, like the US banks did.