How exactly do I find a Notice of Default on Home mortgages?
Hi, I’m an aspiring real estate investor, and I was wondering how I would find public records of payment defaults. I’ve read about people finding such things at a courthouse but I’m not too sure about how it works. Any info about this for the Peel region, in Mississauga,Ontario would be best, but all answers are welcome. Thanks!
Tags: default, Exactly, Find, home, Mortgages, Notice
You must have been reading American books or gone to a U.S.-based seminar that told you you could find pre-foreclosure properties. In Canada, and Ontario in particular, these notices of default are not public documents. The normal process would be: after several letters from the mortgage holder to the mortgagee warning of the consequences if payment is not brought up to date, the mortgage holder can either take the Power of Sale route or the Foreclosure route. Power of Sale is much more common because the lender can recover more of the outstanding amount.
When you refer to the courthouse, what you really mean is the Land Registry Office or Land Titles Office, where documents get filed by lenders or other debt holders to either encumber a property or to take over title to it.
If you are interested in this method of buying real estate (which comes with a lot of things that you cannot control), I recommend that you get your hands on a book called Non-Traditional Methods of Buying Real Estate in Ontario by Paul Gordon.
But a smarter way is to learn a proven system such as taught by the Real Estate Investment Network (REIN). See the link below.