Profiting From Foreclosures in Canada Part 2
By Gord Lemon | January 1, 2012
If you missed the previous article – Profiting from Foreclosures in Canada Part 1
As a full time Canadian real estate investor, we will be able to create a lot of business by helping people that have got into financial difficulty and are in the midst of the foreclosure process. Real estate investors need to understand what the process is and the options for the person in foreclosure before being able to advise or help them. We are continuing in our “Profiting from Foreclosures in Canada” series.
What if a person has a short term financial problem?
If a person just has a short-term problem, they can often work it out with the lender: maybe missing some payments and then catching up on them at the end of the mortgage. The law is generally on the side of the homeowner to try and get back in good standing.
If the lender does begin the foreclosure process, what happens first?
Essentially, the lender applies to the Court for an Order Nisi, which is the first order for foreclosure (which means an order of sale). The owner would then a document called a “petition for foreclosure”, which is the lender’s application to the Court.
Lender may sue the homeowner
At the same time, the lender may also sue the homeowner for the amount of the outstanding mortgage balance. The homeowner must file a document called an Appearance Document within seven days of getting the petition.
Once the homeowner does this, no one can take any steps in the foreclosure process without the homeowner being notified.
If the homeowner doesn’t file an Appearance Document, then the foreclosure will go on without the homeowner and the homeowner won’t really be able to protect themselves.
These particulars are province-specific, but quite often they are very general as well.
Order Nisi
So after the homeowner files the Appearance Document stating that they are going to appear, the homeowner will get a notice of hearing that will tell them when the lender is asking the Judge for the Order Nisi to start the foreclosure process.
Redemption period
At the hearing, the Court will give the lender and Order nisi; in most cases, they will also give a redemption time to the homeowner to be able to pay the mortgage in full, or redeem the amount that they owe plus interest, costs, and taxes. This is called a redemption period, and we have an article specifically focused on that.
In most provinces, the redemption period is usually a six-month period, because they know the situation the homeowner is in, and that they have no chance of paying back the mortgage. The Court can make an order for the homeowner to sell the house at any time as well, including at the Order Nisi stage.
Court appearance
So the homeowner should appear in Court and ask the Judge for as much time as possible to get the money to pay off the arrears. They can even ask for an extension if they need more time, although they have to make sure that you have a good reason for the extension, and you have sources for payments in place.
Canadian Wealth Builders offers many unique, practical, “out of the box” real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.WorldWealthBuilders.com/live
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Canadian Wealth Builders visit British Columbia Supreme Court in Vancouver
By Navtaj Chandhoke | January 1, 2012
Vancouver September 21st, 2009 Arwen Brooks
Canadian Wealth Builders (CWB) recently completed a very special 3-day Foreclosure Apprenticeship in Vancouver. Part of this unique Apprenticeship was visiting the B.C. Supreme Court, where all Apprentices received first-hand experience on how the B.C. foreclosure system works. Each Apprentice took part in 2 days of in-class intensive education. This includes becoming familiar with the Mortgage Act, the Foreclosure Act, and property law, as well as many practical rescue remedies that enable each Apprentice to help people and make money.
Each Apprentice goes through many group and partner activities and academics, as well as understanding the practical uses for all the information. Once the Apprentice has completed the training, they are given the designation of a B.C. Foreclosure Rescue Expert.
The developer behind CWB’s unique training style is Navtaj Chandhoke, VP of CWB. When asked about the reasons and intent for creating this course, Navtaj Chandhoke responded: “I was very disappointed in the current education available for B.C. real estate investors. The information and expertise was only available to a handful of lawyers, not educators. At CWB, we decided to take a giant step to disclose the secrets of the Foreclosure process, and the remedies and “dirty tricks” of the trade which have been used on distressed homeowners to gouge their last penny.”
On Monday Sep. 21, all Apprentices were called in to B.C. Supreme Court. They were briefed about court conduct and etiquette. Once in the Supreme Court of B.C., they were able to understand all of the Foreclosure cases that were heard in front of Honorable Supreme Court Judge (Master). These cases involved many petitions, motions, disputes and vesting orders (final sales). Apprentices were able to understand the legal terminology, as they now had the knowledge to understand all that was happening. During the procedures, the Judge made several rulings in which all Apprentices had already acquired a broad knowledge.
CWB Apprentices got a chance and opportunity to meet 2 homeowners who were in the process of losing their property. The Apprentices were able to utilize all of the rescue remedies to help the homeowner avoid or delay the process, providing the homeowners with a second choice and enough time to downsize.
Honorable Supreme Court Judge Donaldson inquired as to the presence of the CWB Apprentices. Upon hearing of the CWB Foreclosure Apprenticeship, he decided to share his position of the foreclosure process in B.C. Apprentices were allowed to ask some direct questions to the Honorable Court Judge Donaldson. He was kind enough to shed light on the cases that were heard that morning, explaining the reasons for his rulings. It was a one-of-a-kind educational experience for the CWB Apprentices, to interact with a British Columbia Supreme Court Judge. The height of excitement and acknowledgement coupled with their newly gained knowledge of B.C. foreclosure was seen in every Apprentice’s face, which may be a landmark in their life.
CWB continues to have the most innovative, aggressive, roll-up-your-sleeves, get into the trenches, and practical aspect of teaching. Gord Lemon of CWB shared his observations from the beginning to the end of the training, saying that “on the first day, the Apprentices had no idea what to expect. As they went through the course, it was very obvious as their mindset started to go from very limited to infinite possibilities. It was a major transformation as they worked through the exercises and enhanced their presentation skills, visibly coming out of their shells and ready to take on their business in earnest.”
The Apprentices had a few other surprises, which included a visit to the B.C. court registry office where each Apprentice was given 2 recently filed foreclosure cases. The ability of the Apprentices to translate all legal documents with ease demonstrated the transformation of the Apprentices into actual experts. Canadian Wealth Builder`s new B.C. Foreclosure Rescue Apprentices have a mandate to help distressed homeowners by assisting them through a very difficult time in their life, and are well on their way to making a huge fortune for themselves.
In reflection on his innovative education system, Mr. Chandhoke notes that “this Apprenticeship has filled the void of the rights and obligations of the homeowner, lender, the lawyers and the courts. Our intent is to bring awareness to Canadians that 500,000 Canadians are experiencing a very difficult time in this economic downturn. CWB maintains to educate our apprentices to help families first.”
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What to do in Foreclosure or power of sale in Canada?
By Navtaj Chandhoke | January 1, 2012
What to do in Foreclosure In Canada?
As full-time Canadian real estate investors, we are always on the lookout for good deals, while helping those in need. With the recent economic downturn, a large market in foreclosures and power-of-sale properties have become available from those who have suffered the results of being unable to pay their mortgages.
Power of sale
With housing values deteriorating across Canada, the national unemployment rate inching skywards, and personal debt loads exceeding record levels, and personal bankruptcies high record, it’s not a surprise that foreclosure statistics are also increasing at a significant pace in Alberta, British Columbia and Ontario.
How many Canadians are Facing power of sales or Foreclosures?
While the exact number is unknown – unlike in the US, foreclosure statistics aren’t publicly available in Canada – many experts, including those at the Bank of Canada, believe that increasing foreclosures are a natural side effect of a poor economic climate such as this one. The fact many Canadian homeowners are holding mortgages greater than the value of their house – particularly those who obtained the now-defunct 40-year, zero-down mortgages – is only adding to this number.
How the power of sales or Foreclosure works in Canada?
So what should you do if you find yourself on the brink of foreclosure? Well, for starters, it’s helpful to recognize that, unlike in the U.S., you don’t have the option of mailing in your keys and walking away. In Canada, the mortgage debt is the homeowner’s – not the lender’s – and the lender can do whatever it takes to get that money from you, including garnish your wages. As a full-time Canadian real estate investor, you should be aware of the downsides to a loan or mortgage.
What is the difference between Power of sale and Judicial Sale in Canada?
Depending on the province you live in, lenders will likely go through a Power of Sale or Judicial Sale to recover any owed debt. The main difference is that the Judicial Sale process involves going through the court system, while the Power of Sale system allows the lender to sell the property without the involvement of the court.
What should I do,if I am facing power of sale or foreclosure in Canada?
The first thing you should do if you receive a letter from your bank or lender threatening Power of Sale or Judicial Sale proceedings is to contact your lender right away. If you’ve historically been making your mortgage payments on a regular basis and a rare occurrence – such as an illness, injury, or job loss – has forced you to miss a few, the lender may be motivated to work something out with you.
What happens If I put less than 20% Down payment to acquire my home?
If you had a down-payment of less than 20% of the value of the home when you purchased it, the lender is protected by mortgage default insurance. Canada’s three mortgage default insurers – Canada Mortgage and Housing Corporation, Genworth Financial Canada, and AIG United Guaranty – each have a type of ‘work out’ program that helps homeowners make their mortgage payments during difficult times, either by creating a temporary interest-only payment plan or forgiving a few mortgage payments.
Can I talk to my ex employer for help facing power of sale or foreclosure?
If you don’t have a high-ratio mortgage, you could try talking to your employer’s human resources department. Many companies will find ways to help their employees stay in their homes, either by offering temporary loans or paying out remaining vacation pay.
Taking these steps might be enough to save you from foreclosure, thereby keeping your credit score from taking a nosedive. Full-time real estate investors should educate themselves on preventing foreclosures, since their knowledge may help out others who find themselves in over their heads.
What else can I do while facing power of sale or Foreclosure in Canada?
If other debt payments – such as credit card debt, car loans, or student loans – are preventing you from making your mortgage payments, you may be able to refinance your mortgage. In order to refinance, though, your total debts can’t be greater than 90% of your home’s value.
While you might have to pay a fee to break your mortgage, the benefit of refinancing is that it allows you to roll all your debts into your home at a lower interest rate. For instance, right now the rate on a typical five-year fixed mortgage is 4.5%. In most cases, your minimum monthly payments are drastically reduced, giving you increased cash flow.
What happen if I can NOT refinance my home while facing power of sale or foreclosure?
If you can’t refinance, you might try contacting a debt settlement company. Unlike bankruptcy trustees, a debt settlement company will talk to your creditors and reduce your interest rates or debts owed without affecting your credit rating. Just make sure you choose a reputable firm rather than one that charges large upfront fees without really helping your situation at all.
What is my last resort while facing power of sale or Foreclosure in Canada?
If you’ve exercised every other possible option and you still can’t find a way to afford your mortgage payments, you might have to visit a bankruptcy trustee.
A bankruptcy trustee can draft a consumer proposal – a legal process that requires creditors to reduce or forgive certain debts – or assist you in filing for bankruptcy. A bankruptcy filing immediately stops legal action by creditors and, in return, clients must surrender the majority of their assets and split up the proceeds between creditors.
Depending on how many creditors you have, this tactic may allow you to stay in your house. A consumer proposal typically stays on your credit report for three years, while a bankruptcy usually sticks around for over six years.
What happens If I sell my Home before the Lender sells?
If all else fails, you might have to sell your home yourself. If you sell your home before the lender does, it will not be considered a Power of Sale or foreclosure and therefore will not be held against your credit score. You will, however, have to pay the lender back with the proceeds of the sale of the house.
What happens if I loose my home in power of sales or foreclosure in Canada?
If you do lose your house to Power of Sale and or foreclosure, it will stay on your credit report for six years.
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The Power of Sale Process in Ontario
By Gord Lemon | January 1, 2012
The Power of Sale Process in Ontario
As a full-time Canadian real estate investor, we need to create many opportunities for ourselves on a regular basis. We need to attract sellers that are in particular situations whereby we can help these sellers and to be able to create massive and passive income for ourselves.
The Power of Sale Process in Ontario
The Power of Sale process in Ontario has been created in such a manner as to keep “foreclosure” out of the court system. It has been created in such a manner to allow the lender to get the defaulted loan back to them as quickly as possible. If the lender wants to do this process very quickly, it can take as little as 53 days.
The process is as follows:
Once a mortgage is 15 days in default, the lender issues a notice of sale to the mortgagor. This notice of sale contains a redemption date which is 35 days after the issuance of that document, coupled with one day up front to issue the document and one day a the end, for a total of 37 days, at which time the mortgagee (lender) must sit and wait until the expiration of that said redemption period.
Upon the expiry of the redemption period, the mortgagee (lender) may issue a statement of claim for debt of possession with the courts. What does this mean?
It means they are staking their claim to be able to repossess the property, not to own it, but to be able to sell it or get it sold, in order to be able to capture the debt that is owing.
The defendant then has 20 days at that point to file a statement of defense with the court. This claim can be served personally to an adult member at the household where the default happened, but it must be followed up by a mailed copy addressed to the defendant. So the period for filing a defense could be extended an additional 5 day, so this could be a 25-day process while the lender sits and waits.
If the defendant does file a notice of intent to defend, this period can be extended up to 10 days. If the defendant fails to file a statement of defense, the plaintiff (lender or mortgagee) signs a default judgment with the court at which point a motion record is then prepared to obtain order for leave to issue a writ of possession.
What is writ of possession in Ontario?
The defendant is ordered to leave the property, and writ of possession (right to possess the property) is issued to that lender. If that writ of possession is issued with the court, it is also filed with the sheriff, also known as a bailiff or enforcement officer, in the jurisdiction where the property is located. The sheriff will then arrange for the eviction.
In the next article, I will talk about the advantages and the time-lines that we as investors have to be able to profit on deals like this.
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Foreclosures and Power of Sales in Canada
By Gord Lemon | January 1, 2012
Foreclosures and Power of Sales in Canada
Most Canadians think foreclosures have not happened that much in Canada. In fact, most think that the sub-prime fiasco that the United States has and is experiencing has not affected Canada. Let me tell you that that is not true.
Canadians are foreclosing at the highest rate in history
There are foreclosures all over the country that are affecting about 45-50,000 new homeowners per month. Which, if you think of the population of Canada, that is quite a lot.
What is a foreclosure in Canada?
A foreclosure is a legal action that a money-lender can take if a person who borrowed money using a mortgage stops paying back the mortgage. Once that happens, a process begins known as foreclosure or power of sale. This process differs from province to province.
What is Power of Sale in Canada?
Power of sale is used as a lenders primary recovery method in Newfoundland, New Brunswick, Prince Edward Island, and Ontario. This particular method was created to keep the recovery process out of the court system and created the ability to make it happen at a much quicker rate than a foreclosure. The Power of Sale process is utilized to get a homeowner out of a property in as little as 53 days.
When and where is the Foreclosure Process used in Canada?
The foreclosure process is used as the primary recovery method in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec. Foreclosure process is primarily a judicial process whereby each facet requires either a court application and filing, or actually being in front of a judge.
In Nova Scotia, the primary recovery process is called the Mortgage Foreclosure or Mortgage Foreclosure and Sale, but it is primarily considered a judicial process in which the court is involved throughout.
In Alberta and Manitoba, a foreclosure ordered from the court can only be requested after a mortgage property was offered for sale at a public auction, whereby it was advertised in the paper or posted in the clerk’s office at the courthouse, or was actually on the MLS and listed with a real estate agent.
The highest bid has to come in which is sufficient to extinguish the mortgage debt. If that has not happened then a foreclosure order from the court can be requested, and the lender can take over the property at that point.
In the foreclosure process and Power of Sale process, the key point for a real estate investor is the owner has the right of redemption.
What is right of redemption?
This means the owner can bring the mortgage back into good standing by paying off all arrears, interest, legal fees, etc. within a set time period. This is the time frame where there is an excellent opportunity for us. If we can have the owner contact us during this period, we can help them and help ourselves as well.
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Profiting from Foreclosures in Canada Part 1
By Gord Lemon | January 1, 2012
As a full time Canadian real estate investor, we must be continually creating massive and passive income for ourselves. Foreclosures can be a source of many deals for us, where we are helping people who have gotten themselves into a situation and allow them to downsize with dignity and with money in their pocket.
So, what actually is a Foreclosure?
In some provinces in Canada we have foreclosures; in other provinces we have power-of-sale. A foreclosure is a legal action that a lender can take if the person who borrowed money or got a mortgage stops paying back that mortgage. The foreclosure allows that lender, in certain provinces, to take or sell the person’s house with the Court’s permission to do so?
What is a mortgage ?
A mortgage is a contract between a borrower and a lender (or mortgagor and mortgagee) for the mortgagor to pay back the loan to the mortgagee. When you get a mortgage to buy a house, you borrow money, and you promise to pay back that money in regular installments.
So what happens if you miss a mortgage payment, or you can’t make a payment?
Do you automatically lose your house? Lenders don’t want to foreclose on you. Why? Because it is expensive and it takes a lot of time.
So the lender mat give you forbearance, which means that they probably won’t start to foreclose until three months after you are in default. Normally, the lender will start demanding payments as soon as they realize that you have missed one, but if you don’t reply, the lender will start the foreclosure procedure. It is best, if you are missing payments, to contact the lender in order to try and work something out. That is much better than not replying to anything.
In the next article, we will discuss how to make money in foreclosures as a real estate investor.
Canadian Wealth Builders offers many unique, practical, “out of the box” real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.worldwealthbuilders.com/live
Join now Canadian REI club membership and attend upcoming
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What To Know Before You Flip a Property
By Gord Lemon | January 1, 2012
As a full time Canadian real estate investor, we must be doing deals on a regular basis that continue to create massive and passive income for ourselves. The deals we want to spend our time on do not require our own money to facilitate the acquisition or profit.
In a previous article, we talked about flipping a contract or assigning a contract. What we want to discuss in this article is what we need to know before notifying our investor or end buyer.
Firstly, we need to understand “will this property make money, or will the investor make money on this property?” A lot of investors out there either want to become landlords or are renovators. It is easy to find properties that perhaps are tenanted with positive cash flow, or are in need of some cosmetic repair. Let’s deal with the former as an example.
Income and expenses
If we find a property that has positive cash flow, we need to show our investors the income and expenses of that property. We should understand how much the tenants are paying, how long the tenants have been there, the amount of positive cash flow the current owner is getting as well as any other pertinent details of the property.
Crunch the numbers
We have to understand how the purchase price that we have negotiated affects the buyer. We must calculate what the new investor’s mortgage amount may be (with a few examples of varying down payments) , be able to work the monthly expenses accordingly, and able to show what the positive cash flow will be as well as the investor’s cash on cash return.
In a renovation, you must know the fair market value of the property, not your negotiated price, but what the actual market value of the property is. You must also know what a good “fire-sale” price is for the property in order for an investor to make a quick sale.You need your acquisition costs, 3-6 month carrying costs, and renovation costs on the property to determine a logical profit.
There are many other ways of determine what the exit strategy should be on a particular property that you are assigning. The key factor is to understand the various situations that are related to the property in terms of an exit strategy, and be able to intelligently discuss those with an end buyer or investor.
Canadian Wealth Builders offers many unique, practical, “out of the box” real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.Worldwealthbuilders.com/live
Join now Canadian REI club membership and attend upcoming
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Flipping a Property You Don’t Own
By Gord Lemon | January 1, 2012
As a full time real estate investment professional, you need to create business for yourself that is not solely hinged on you coming up with money to put into every property acquisition. That is not really a business… that is only an investment.
That process can also be buying yourself a job …as a renovator, or buying yourself a job as a landlord. Both of these are far too dependent on using your time to make your profit happen. As a professional real estate investor, we have to make the best use of our time, which is our most precious commodity.
In this article, I would like to discuss flipping properties that you don’t own. We all understand the concept of flipping a property. To most people, flipping is purchasing a property (with their own money), putting more money into it as a renovation, and then flipping it to an end buyer. Or one can buy a property from a builder, wait until the build is complete and sell it at an appreciated price.
These are very speculative ways of making money and can backfire on you. They can cost you a fortune in time, money and in the liability that comes along with property ownership. Flipping a property that you don’t own is one aspect of having a full-time real estate investing business.
Networking system
In order to begin creating our business , we need to have potential deals coming to us all the time. Not just form our realtors or team members, but from a whole networking system that we have created (as discussed in prior articles).
To begin the strategy, you need to have somebody call you up that needs your service… they need to sell their property quickly. You need to have a network of investors or end buyers in place that are looking for specific types of properties. (you would already know this because you have them categorized in your database) Once you know what people are looking for, you are better able to fulfill that need.
Tie up the contract
When you “tie up” a contract and have negotiated price, terms, and a due diligence period, you are now able to show the property to other potential investors or an end buyers to see if they would like to buy that property. If they do want to be the end buyer of that property, you, through a series of documents, are able to assign that property to the end buyer or investor, allowing them to close on the property.
Make your fee
Of course, you are entitled to a fee for that. Make your fee will in keeping with what ultimate price that the end buyer is paying. Make sure the price that they pay you, coupled with their purchase price, will still be a very good deal for them regardless.
Now you have “flipped” the property that you have never owned, that you have never taken a mortgage out on, that you have no liability in. Nobody has asked to pull your credit, no one has asked for a job letter or employment verification, or anything of the sort.
This one facet of your business can create a lot of steady income for you, if you have the network and marketing to bring properties to you.
Canadian Wealth Builders offers many unique, practical, “out of the box” real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.worldwealthbuilders.com/live
Join now Canadian REI club membership and attend upcoming
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Michael Jackson’s Foreclosure of Neverland
By Navtaj Chandhoke | January 1, 2012
With millions of foreclosures in the United States, most of us think that this can only happen to regular folks or working class people. However, even celebrities can have cash flow problems. Michael Jackson’s Neverland ranch is a perfect example of how an over leveraged property can cause even the most famous of celebrities to go through foreclosure.
Acquisition and Renovation Cost of Neverland
Michael Jackson purchased the Neverland ranch in 1987 for approximately $20 million. The ranch extends over 2,800 acres of land. Michael Jackson spent over $35 million improving the property which features two railway lines, two helicopters pads, its own fire department, a zoo and an amusement park equipped with a full range of rides. The property cost an estimated of $10 million per year to maintain.
Mortgages on Neverland
Jackson had a $25 million mortgage on the house which was held by Fortress Investment Group, a New York based private equity and hedge fund group. In 2007, he was $23 million delinquent on the mortgage loan and therefore the foreclosure proceedings began. In California, the law states that if you miss three mortgage payments in a row, you have 90 days to make a payment. A notice of trustee sale cannot be posted earlier than 90 days after a notice of default is filed. The notice is not filed unless the mortgage loan is in substantial default, sometimes six months or more past due. Since the 90 day period was over, the property was scheduled to be auctioned off on May 14th, 2008 but was canceled on May 9th, 2008 because Jackson received a new loan to cover the debt.
Avoid foreclosure on Neverland
Jackson avoided foreclosure by selling Neverland to a real estate investment company, Colony Capital. Colony Capital entered into a joint Venture with Michael Jackson to renovate Neverland and to resell it. Since Michael Jackson has died at the age of 50 as a result of cardiac arrest, the future of Neverland will be decided by co-owner, Colony Capital.
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The Suicide Clause
By Gord Lemon | September 20, 2009
As a full-time Canadian real estate investor, we must be very aware of the types of mortgages that we take. During our time as an investor, we will do deals where we do not take the mortgage ourselves. In other words, we may joint venture with someone who does the qualifying. We will, however, be doing deals where we do have to get a mortgage.
The evil clause
The clause is worded differently from mortgage to mortgage, but essentially states that you cannot put a second mortgage behind the first or you are violating the terms of your mortgage and the lender has the right to “call” the mortgage…meaning you have to come up with all the money…fast!
This particular clause is vastly important to how you do business, how you can continue to finance properties, and how you can advise others in doing their business. Your mortgage broker, your lawyer, or your banker may have done you a great disservice by not scratching out this clause.
Could be disastrous
If you, as the real estate investor, decide to put a second mortgage behind any property that you have without knowing that you can do that (as according to your mortgage agreement), and you do that on a few properties as a way to pull out money on these properties, you could in fact be setting yourself up for a disaster, which may include a bankruptcy.
Forced to file bankruptcy
If economic times are tough, a bank may pull title on any of their clients who are holding more than three or four properties. ,They may see that there are second mortgages behind their first mortgage. Knowing those 2nd mortgages are technically breaking the terms of the 1st mortgage, they have the right to “call” all of their mortgages at once. This means that within 24 hours, you may have to sell those properties in order to pay back those funds, which will obviously be impossible. To resolve this, you may be forced to file for bankruptcy.
In the future, look at the mortgage documents that you are signing and be very aware of what we call the ‘suicide clause’. Get your mortgage broker, your banker, or your lawyer to scratch out the clause which will enable you to put a second mortgage behind the first mortgage. If the first mortgage lender will not let you do this, perhaps you should try another lender.
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