The mortgage broker just informed me he found a short sale record on her credit report from December 2014 (long story but the short of it is she cosigned my sister's home which she defaulted on and ended up buying as a short sale).

Each house has its own mortgage but if we would default on a payment on a rental they could come after our primary residence.

@Jonathan VanderPloegIn Ontario, if there is no written lease, then there is a "default" periodic monthly lease in effect ... better spend your weekend reading the Residential Tenancies Act for your province.In your situation, rent is to be paid on, or before, the first of the month - you can ask your tenant to remit his/her rent early, but it is due on the first and the tenant is within their right to pay it on the first.If you establish a written lease with your tenants, you can set the monthly period to begin/end on which ever dates are most convenient (ie. the 15th of each month), however rent will be due on that date.  

That means that I was awarded a default judgment in my favor, which includes the $850.00 commission and $50.00 court cost.  

I did a lot of loans in those days for flippers who were in this scenario.as well as I foreclosed on a good number of borrowers as well who defaulted on my loans.. but the good news is you have monster equity.. sell the home move on.. if you think you were wronged sue the bank.BK should be last resort that will haunt you.. if you plan on ever borrowing money again.

If you like the price then personally I'd do the deal..the section 8 tenants sound pretty reliable, and if for any reason they default on thier rent you can of course file for eviction.

What proposed financing options would we be able to accept, and would non-permitted rental units default this home to not being passed by any appraiser, or would the appraiser leave out the rental units in the appraisal?

Hey @Jona Leu I have been in your position and generally default to using option 2 as I've done both in the past numerous times.  

The buyer was in default of the original agreement as set forth in the Contract.

My question is what actions can I take at this point to own this property despite not having the support of all the owners listed on the deed and taxes on the verge of default?