Canada Housing meltdown mortgage woes

In the event of a complete market or housing market meltdown would a small equity loan be likely cancelled in a governmet bailout or would it simply increase with interest as the mortgage companies consolidate?
Thanjks for your time

xxxxxxxxxxx in Vancouver

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david ingram replies:

You can expect the financial institution to pursue you for the money plus interest.  Most of the paperwork will leave you owing the money even though the security does not exist anymore.  There is an exception for a lot of mortgages in the Province of Alberta.

In the case of conditional sales contracts for cars, etc., it is generally that the financing company has to make a choice to take the car and call it quits or leave you with the car and sue you for the full amount.  Again, differs with the province and the  terms of the contract.  Read the fine print. �