'Will the bank seize my house?'

Will the bank seize my house?

On 06/08/09 13:29, Curious asked the following question:

Hi. I would like to know whether the bank (in Ontario, Canada), through which our mortgage and Line of Credit are financed, can legally seize my home.

My late husband's earnings were the primary income upon which our mortgage & LOC were based. My name is on the documents as co-owner and co-signer. I am presently a homemaker, unemployed, with no recent work history, and my husband passed away last year, with no insurance coverage. I have kept up all the payments to date, drawing from our RRSP, but have been told by friends that the bank can either foreclose or use Power of Sale to seize my home, anytime, since on paper I have no income, other than a RIF and my husband's CPP.

The equity value of the home is more than the total amount that I owe the bank, but since, with the economic downturn the banks are no longer providing equity-based mortgages, they will not renew my mortgage when it comes due, or provide me with a new mortgage if I sell my home now. Even if I find a job soon, I will not have quite enough money to buy another house, without a small mortgage, and I won't have a viable work history for at least a year. The bank has not threatened to call in my loans yet, but I am concerned. Please advise.

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