Multiplex Foreclosures in Canada

[Filipe Matos]

Some people ask about foreclosures in Canada, here is an email I got from an expert in Ontario refering specifically to multiplex properties:

"Foreclosures are rare in Canada and Power of Sale is more common. The problem faced is when the lender's lawyer seizes the property, they levy all sorts of fines and fees on the deal and the deal is sold at market value minus 5%....not much of a deal anymore. Plus if you have a multi-plex that defaults, it is because they have bad tenants in them that trashed the place and the landlord gave up. Unless you have deep pockets and you kick all the tenants out and re-hab all the units, you will end up following the last landlord into another power of sale. The good buildings are mainly owned by REIT, Real Estate Trust and owned for more than 20 years and the investors are lawyers, doctors and business men that are not hurting.

Filipe