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January 27, 2021, 09:11:47 PM |
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Semobo , I just googled Calgary real estate offices, tons came up, with phone numbers too. Those houses were valued around $85,000 up to over a million. Owners had no employment As the pasted post below explains ,so they were not able to make the mortgage payment .They would lose the house and their credit rating . So being there was a law here in Alberta that any residential mortgage could be assumed ,they sold their house to those who advertised that they would buy the house and save the seller's credit rating . The new buyer became the one on the mortgage ,and that is who lost his credit rating . Oh, I just read what I had posted , you are right ,it looks like the houses full price was $1 . No they were still worth a lot of money if a buyer could be found. actually, the buyer was only taking over the mortgage for one buck . The home still had the huge mortgage on it ..The seller lost what equity was in the home ,but he would loose it and his credit rating if the bank repo'd it . The law has now changed , about ten years ago they stopped allowing people to take over a mortgage with out the banks approval.. .I'll paste what I wrote earlier
------------------------------------------------------------------------------------------------------------------ I'm in the province of Alberta ,western Canada , until about 10 years ago In this province only ,any residencial property mortgage could be assumed. I could ( and did ) buy a house with a mortgage ,then walk into the bank that held the mortgage ,and have them transfer it into my name . They didn't like it ,but nothing they could do about it.
In 1982-1984 we had a horrible recession when our prime minister ( the father of this putz who is running things now ) decided to create a huge tax on crude oil , since Alberta ran on oil royalties , all the drilling rigs left for USA, Oil Sands layed of people to, Oil explorartion stopped also . So many people had moved here from other parts of the country ,that finding themselves out of work, no government assistance ,they moved back to where they had lived before coming here .the glut of houses on the market caused a 35% drop in prices. To save their good credit standing they would sell their house for 1$ and the buyer took over the mortgage. leaving the seller in good standing at the credit bureau !
But the good part is yet to come ( how about this you bank haters? ) . The buyer would rent the house out for very attractive price ,but not pay the bank a cent ( sounding good? ) after 3 months of threatening letters to the new holder of the mortgage the bank would take him to court , it was easy to stall the banks off in court for 9 months before the sheriff came and physically booted the tenents out and reclaimed the house . In those days you could rent a house out for $500 ,which was attractive even with the recession . So for one buck you got the house and mortgage in your name and $500 free and clear for 9 months $4,500 on each of the houses you bought . Your credit went to zero but who cared , good blue collar wage was $11 per hour , less than $1,800 per month before taxes ,so you can see the incentive . My lawyer bought over 200 of them .
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