Vancouver foreclosure spike hits CIBC

CIBC has initiated 15 foreclosure proceedings in Vancouver as of February 26, according to court records. In contrast, the number was nine in 2019 and just two in 2018 for the first 57 days of the year.

There has been no significant change in mortgage balances in the Vancouver area as reported by the bank12.

A concerning statistic is the rapid growth of high loan-to-value (LTV) uninsured residential mortgages in Greater Vancouver area on CIBC’s books. Mortgages with an LTV over 75% represented just 1% of the region’s uninsured mortgages in the fourth quarter of 2016. That figure had jumped to 7% in Q1 of 2020.

As we reported earlier, CIBC has been having issues with mortgage fraud 3 and locating borrowers to server foreclosure papers 4 involving property buyers who derive their income offshore.

  1. CIBC Investor Presentation December 1st, 2016 Fourth Quarter, 2016 
  2. Investor Presentation First Quarter 2020

One thought on “Vancouver foreclosure spike hits CIBC”

  1. Foreclosures in Vancouver are different than in most Providences.
    In Canada a Receiver takes possession of the property.. maintains the property and has the responsibility of selling.A Receiver also may arrange financing terms.
    In BC foreclosures are given to the courts.. A judge decides on the selling. In most cases the Banks would rather have the owner sell the property himself than go through a cumbersome court ruling. Even after the property is sold by the court, the initial owner may repurchase the property up to a year later.
    The transparency of a court sale is not fully apparent as a judge does not have to sell to the highest bidder.
    If a property is not sold it falls into disrepair ..
    BC needs to rethink it’s bankruptcy laws

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