Bank discount mortgage

[xray]

I had a property that was 4 months behind on mortgage payments.

Unfortunately the property went into foreclosure before I could get it

sold. The owner had agreed to sell it to me for what she she owed on it

which was $230,000. Market value was about $250,000.

I was wondering if maybe I should have approached the bank to

see if they would discount the amount owed on the mortgage.

Has anyone tried to do something like this?

I'm in Ontario.



Trudy

 

[RedlineBrett]

Depends where it is in the foreclosure process.



Is the owner still living there? If they are they can probably still sell even if they are well behind on their payments.



However getting the bank to take less (short sale) doesn't typically happen in Canada especially if the lender is a major institution.

 

[lanedry77]

it also doesn't typically happen if it's a mortgage in first position, and happens even less when it's one mortgage and there is equity in the property.



but, it *DOES* happen. just not often!







Thanks,



David.

 

[neill]

+1 to what Brett said - if it is only 4 mos behind, then chances are they have just started the process, and the owner still is on title - if that is the case, then redemption is still possible.