When you do a CMHC Mortgage you sign a Personal Liability schedule that is attached to the registered Mortgage if it is not built into the financial institution's Mortgage terms already that states that the financial institution will seek a judgement against you to cover their potential losses from selling the house.
This is a requirement from CMHC in order to payout an insurance claim filed with them by a financial institution. If there is no judgement attempt, then CMHC will not cover the financial institution's losses and the financial institution is on the hook for their losses.
I would assume that once the financial institution gets their money from CMHC that they will release the judgement against you.
At least, we usually release everything at our Credit Union once everything is cleared up and move on with life.
I hope everything works out for you.
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