Bank discharged mortgage instead of transferring it
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Thread: Bank discharged mortgage instead of transferring it

  1. #1
    Junior Member
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    Question Bank discharged mortgage instead of transferring it

    Hi all,

    I just received a call from Alterna Bank who I transferred my mortgage to from BMO a year ago.
    They said that BMO discharged my mortgage instead of transferring it and they want us to sign new documents to "protect us".
    I'm thinking this is to protect them, not us.
    Is there any reason why we shouldn't sign the new paperwork?
    The fact that it took a year to figure this out is alarming to me and I said that to Alterna, but was told that these things often take some time to get finalized.
    Any thoughts?

    Thanks in advance,
    Chris


  2. #2
    Senior Member
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    The golden rule is, those who have the gold make the rules...if you want to pay back the mortgage right away, then don't sign. If you want to continue borrowing their money, I'd suggest you do what they ask.

    They aren't trying to rook you, they are just doing their proper paperwork. Why would you have an issue?
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  3. #3
    Senior Member
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    I also don't think they are out to rook the OP.

    At the same time, I have had co-workers offered one rate/set of prepayment priviledges by email then the paperwork to sign had different, more favourable to the bank numbers several times before he finally signed for the what was offered. So I'd take my time to verify there's nothing different and what one expects in the paperwork before signing.


    Cheers

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  5. #4
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    Did BMO assign the mortgage to Alterna? If not, Alterna needs to chase BMO to sign paperwork with them to assign the original mortgage. If BMO did assign the mortgage to Alterna, but discharged it from land titles instead of transferring the land titles registration, then Alterna should be able to register the mortgage based on the original mortgage and the assignment without involving you.

  6. #5
    Senior Member
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    Feb 2014
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    Signing the paperwork protects you more than it protects the bank. You can always walk away from your lender (on good terms of course) whereas your lender can't walk away from you.

    I don't see any reason you should not sign the paperwork. Just make sure they are not changing any terms of the loan.

  7. #6
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    Thank you all for your input.
    We'll sign the papers.

  8. #7
    Senior Member
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    I'd suggest you actually read the papers before you sign them of course, just so you know what you are agreeing to.

    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

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