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Guest

Same story as most, with a slight twist.
We live in Canada and my wife and I bought a vacation/rental/investment home in Florida in 2005. Needless to say it has not panned out exactly as planned. We do OK in respect to getting guests, but it certainly does not nearly cover the expenses.
We just had a baby 3 mths ago (which is working out as planned), and my wife is no longer working and the house is becoming quite a headache financially.
I spoke casually with a lawyer in Florida over the holidays and he advised that the best route would be deed in lieu of foreclosure - mainly because I am not really concerned with my credit rating in the US, and it would be final.
I have read alot and done some research, and I think I have my plan straightened out in my mind.
The one question that I cannot seem to get a reliable answer about is the exposure of my assets here in Canada. ie- my primary house, car, stock accounts, RRSP (retirement savings), etc...

Any help or advice would be greatly appreciated. I don't need to tell anyone who is reading this how stressing this ordeal can be.

Thanks again.

jerry · Posted: Fri Jan 09, 2009 3:16 am Post subject:

Hi Andy B,

In a deed in lieu foreclosure, the deficient amount resulting from the sale of the property is forgiven by the lender. So in your case, your property in Canada will not be affected in any way.

Thanks,

Jerry

Guest

What about worst case scenario, they didn't offer the deed in lieu option, and the house went into foreclosure?
The house is for sale, but so are 10,000 other homes, so I am not too optimistic.

Thanks very much,

Samantha · Posted: Mon Jan 12, 2009 11:35 am Post subject:

Hi,

Have you spoken to the lender about a deed in lieu? and are you behind on the loan? If you haven't been in default, the lender will not accept a deed in lieu or any other loan workout option. You need to write a hardship letter to the lender and request for a workout plan if you're already behind on the loan.

may god bless you.

Samantha

Guest

I have not spoken to the lender yet, and I am current on payments till now. I will not be paying the upcoming payment, which is due in 3 weeks. I assume that they will contact me, and at that point I will start the diiscussions, followed by a hardship letter and financial information.

Again, assuming worst case scenario - forclosure - does anyone have any input as to the exposure of my assets in Canada, and how agressive a lender might be about going after the loss.

Thanks
Andrew

jerry · Posted: Wed Jan 14, 2009 1:16 am Post subject:

Hi Andrew,

I don't think your assets in Canada will be affected due to foreclosure of your property in United States. The lender can ask you to pay the deficient amount but I don't think he can place liens on your property in Canada.

Thanks,

Jerry

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Exposure of Canadian Assets In Foreclosure