The Lost Paddy

Hi, does anyone know if a home reposession would create problems with a PR application? My mate, who's applying at the same time as me, is looking like he may lose his flat in the next while, could this create problems for him??! Many thanks, TLP.

Jim Humphries

Yes, it could as there are financial requirements regarding funds available for settlement.

ireland2canada

Hmmm. To the best of my knowledge, having financial difficulties like a home reposession, should not be a barrier to PR in itself. What your mate will have to do though is satisfy the immigration officer on a couple of points.

1. He must show proof of funds of $10,618. Unencumbered, readily transferable funds. (Assuming he is applying as a SW. If he gets Arranged Employment then no proof of funds is required). An applicant must show that they meet the PR criteria at the time of application, and it is my understanding that this includes proof of funds. He might get lucky with his immigration officer, he might not.

2. The immigration offer will also be looking for evidence that he will be able to support himself adequately whilst in Canada, and that he will not become a drain on Canadian resources. Of course, I don't know your friend or the circumstances surrounding his home. But he will have to present his case in the best possible light.

ireland2canada

Well yes, Jim managed to say it all in one sentence

mclauchlan35

As said before It will effect him if he can't show his proof of funds but I don't think they will punish him for having financial difficulties. Although I could not say for certain.

Is there no way your freind could sell the flat before it gets to this stage, if he shows the lender he is trying to sell they may back off a little.

The Lost Paddy

Cheers for the reply.

His flat has sunk in price, he actually has two flats and bought a couple of years ago (his mortgages are not exactly 100% legit either, some stretching of the truth was applied to his salary figure) essentially he bought two apartments in Scotland, hoping to make some profit and sell after a couple of years.

Now, two years late the bottom has fallen out of the market, he is being advised to sell one for 30/40k less than the purchase price to stand any chance of selling it and he's up the wall with worry.

He's being advised to just walk away from both as he left Scotland, and at any rate they only have 5 years to recoup the arrears in Scotland, as apposed to the 12 years in England and the rest of Britain...any additional advice?! Should he disclose this issue on his application?! Will they find out about it if this flats are reposessed?

The Lost Paddy

He will have these funds available no problem.

mclauchlan35

I take it they are both interest only, if not thats the first thing the lender should offer. I don't know where the flats are up here but that sounds a bit severe 30k or 40k off the price.

Another thing that he may be able to do is ask the lender if they will add the arrears to the balance and then try to rent both out to cover the costs and see if he can ride out the storm.

The Lost Paddy

Cheers for the advice mate, I think he is trying just that, he is trying to sell one just now, and place the balance owed on the other, and then try and ride out the storm with that one flat ,problem is that he bought for 238k, and it's on the market for 220k at the moment with no movement, his estate agent is telling him he may have to drop to 215/210k or even less if the market continues to stagnate! Think that's why he is looking to walk away & just post the keys to the bank.

The Lost Paddy

Thanks very much, appreciate the advice!

bootlecat

The 5 years is five years from the reposession not five years since he was last resident in scotland. So the clock hasn't started ticking on the five years yet, they will find him if he just walks away.

Also the five year issue doesn't apply, the bank can come for arrears at any point in his life (or from his estate) because as you pointed out on a public forum the mortgages were obtained falsely. Therefore the consumer credit act and mortgage codes won't be any protection to him. In fact if the numbers are large enough he could be looking at a criminal charge for fraud - which would stop his PR

Surrey Expat

Perhaps there is a moral in this story for others. Think very carefully what you do through life. You never know when it's going to come back and bite you and screw things up you never even realised you wanted at the time.

The Lost Paddy

Cheers, food for thought!

Any suggestion on his next step? Citizens advice etc?!

Surrey Expat

If as you say he'll have the funds for settlement, might it not be more prudent to try and reduce debt or at least show some effort?

The Lost Paddy

I think he is now attempting, or is going to attemp to try and come to some arangement with the bank. If as one other poster claims he may face fraud charges then he will really need to speak with the bank, rather than walk away.

He's extremely anxious to get to Canada and this had really shocked him, esp the idea of court cases/fraud/debt's following him for life etc!