A few random thoughts...

Some interesting stats sent to me today.

There are currently:

1030 Detached homes for sale in the Westside of Vancouver

697 Detached homes for sale in the Eastside of Vancouver

1164 Detached homes for sale in Richmond

Wow.

Reading the newspapers on the weekend, I couldn't help but wonder how many of those detached homeowners with houses languishing on the market are seniors?

Particularly since, as the Province newspaper notes, the fastest-growing segment of society going broke in Canada is people over the age of 55. They have acquired the nickname grandpa debtors.

According to the article the number of debtors 55 and over has grown to the point where BC's largest bankruptcy trustee, who focuses exclusively on consumer and small-business insolvency, says that the number of grandpa debtors in the Lower Mainland has exploded.

Debtors aged 65 and older who are working on bankruptcy or consumer proposals has soared by 217% from 2009 to 2011.

The numbers are almost as high for those over 50: age 60 and up jumped 193%; 50 and over climbed 166%.

These people are just the tip of the grandpa debtor iceberg, the firm says. The numbers of older insolvents will continue to grow, fuelled by easy credit and misfortune.

So you have to wonder? How many are desperate to sell their house to address their financial situation?

It's an interesting backdrop to the current market.

And here's another backdrop from the weekend papers.

The Globe and Mail ran an intriguing story on Federal Defence Minister Peter MacKay's Iranian born wife.

She is frustrated with the Toronto-Dominion Bank for abruptly closing bank accounts and cutting off mortgages that belong to Iranians who live in Canada.

Apparently TD was complying with the federal Special Economic Measures (Iran) Regulations that prohibit the provision of any financial or financial-related service to or for the benefit of a person who is in Iran, or is a national of Iran who does not ordinarily reside in Canada.

Over the past few months, TD has mailed many letters to people who fit this bill – whether or not they are full Canadian citizens or residents – informing them that their accounts must be closed immediately and that their mortgages must be quickly repaid.

The item that caught me attention here is how TD was basically calling in home mortgages... demanding immediate payment in full.

Now there's a concept that should send a chill down the spine of every mortgage holder in the country.

I couldn't help but ruminate on the juxtaposition of these three separate items.

A stagnating market, waves of seniors in serious financial trouble, and evidence that banks can still - and will - turn mortgages into demand loans.

The storm clouds gather.

And the potential for catastrophe grows.

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