Falling property values are effecting mortgages
You may think that only American families are losing their homes to foreclosure, but it's happening here in Alberta too.
Falling property values are forcing a Carseland family out on the street.
When the Folviks took out a $288,000 mortgage in 2007 their home was worth $300,000.
Now the three year term is up and they have to pay off the balance which is still $288,000. The problem is because of the intervening economic downturn their home now worth only $240,000, and the banks won't lend a penny more on a new mortgage.
That leaves the Folviks $48,000 short and that means even though they've never missed a payment, the Folviks are losing their home.
Heather Folvik says we're "not deadbeats, we did everything right, and we stand to lose it all".