Messages

1

Questions and Answers / Re: Family Responsibility and Support and is a charge against the interest of land

« on: May 07, 2015, 02:40:41 AM »

Title search shows

Order under the Family Responsibility and Support and is a charge against the interest in the land. No value has been assigned in the document. To find out the amount of the interest, please contact the Family Responsibility Office.

What do I do to find out the how much is registered? I called FRO but they would not share that info with me.

Unfortunately I don't know how you would find the exact amount.  I would assume it would be a relatively small amount like under $20,000 or $30,000.  I think you go to jail or get your wages garnished if you get too far behind with FRO.  That is just my uneducated guess though as fortunately I have no experience in this field so that is a good question for a lawyer.

I would be curious to see if anyone on here has seen a FRO lien go higher than $30,000?  And if so how high was the largest you have seen?

2

Questions and Answers / Is anyone an OTS member?

« on: January 06, 2014, 03:06:10 AM »

I am considering signing up for an OTS membership.  I was wondering if anyone else has or has had a membership on OTS and if they feel it is good value for the money.

Thanks!

3

Property Lawyer / Legal / Re: Defaulted Mortgage

« on: July 03, 2013, 12:04:14 PM »

Thank you all for the replies.

Yes it would be a onetime thing- I'm just interested in this specific property.....no I won't divulge where it is no matter how many beers I'm offered. It's a rural piece of recreational property for hunting....no house or anything of real value.
The mortgage is currently in default to a private lender.
I would like to buy the mortgage and take the time to foreclose so I can secure the property (I realize that the mortgagor might pay it out but that's the chance I'll take)
If there were any taxes owing (I assume there might be some as they haven't paid the mortgage), can't they just be added to the mortgage statement to increase the amount owed?

How complicated would the "offer to purchase" the mortgage be? There must be a few pitfalls that one can fall into? Anything specific I should add/ look out for?

Thanks again.

Yes most private mortgages will have a clause in the contract that says you can pay the taxes for the borrower and add the amount to the mortgage balance (but have your lawyer check to make sure).

I wouldn't think your offer to purchase would need to be complicated but have your own lawyer (not the seller's lawyer) prepare it for you.  Since the person selling the mortgage is probably happy to get a bad mortgage off his books you should ask him to pay for both his and your legal fee's in the transaction. 

Another option might be to offer the borrower a new mortgage to pay out his existing one instead of "buying" his current mortgage.  That way you could create a mortgage contract with your own terms. 

You should ask your lawyer what the timeline and costs to expect in a foreclosure to get an idea of what to expect as well you should tell him your intentions to foreclose and see if he thinks it's a good idea or not.

Best to get professional legal advice before proceeding.

Cheers

4

Property Lawyer / Legal / Re: Defaulted Mortgage

« on: July 02, 2013, 11:47:12 PM »

G2020:

I think we have two situations here.  Case one where the mortgage is in default but it has not reached the tax sale which was the case I assumed that Jima was referring to.  

In the case you referring to where the mortgage was in default and it was going through a tax sale as well because taxes had not been paid I agree with you.  I would not buy a mortgage on a tax sale because you have too much risk of seeing it extinguished

On licencing agree with your basic logic if you are going to do a lot of them but on a single case or a couple every five or 10 years I have been told you do not have to be licenced. I think the key here is like in real estate, if you own the property you can sell it but like in real estate the transaction has to handled by a lawyer for it to be registered properly.  Otherwise every person who gave a Vendor take back mortgage on a real estate sale could be charged.

The person who told me used the example of collecting HST on sales.  If you sell a single piece of land every 5 years you may avoid it.  Do it regularly and you have always charge it.  

In a tax sale case I also agree with you but for a different reason. Especially as you should not contact the mortgage holder because it is as bad or even worse as contacting the owner.    

Mortgages are bought and sold by lenders all the time.  It is called assignment of a mortgage. Note if you are the borrower and try to sell the mortgage you have to check the fine print.  The mortgage has to be "assumable" otherwise it cannot be sold.  

I am assuming Jima is refering to a private mortgage and would appreciate other comments

If you are purchasing someone else's mortgage there is no need to be licenced.  If you where selling someone else's mortgage to a third party and charging a fee you would require a mortgage agent's or mortgage broker's licence (at least in Ontario, not sure about other provinces). 

G2020 is right private mortgages are bought and sold on a regular basis.  Most private mortgage's have terms in the contract that state that the mortgagor must keep his property taxes paid up to date and if he does not the mortgage will be in default and the mortgagee will have the right to pay the taxes for the mortgagor and add that amount to the mortgage balance (typically a fee can be charged by the mortgagee for his troubles).  After the mortgage is in default the mortgagee will then have the right to start power of sale or foreclosure proceedings.

So if you where purchasing a mortgage with tax arrears your lawyer should let you know this after he searches title and will probably advise you to either not purchase the mortgage or to at least have the tax arrears paid off before your money changes hands to avoid having the property sold at a tax sale and you left holding the bag.

Since the foreclosure process is lengthy and expensive you would want to make sure there is enough equity in the property to make it worth your while.