Canadian Note Brokers/ Buyers

[Mike85]

I'm trying to find a Note Broker who's familiar with purchasing delinquent mortgage notes from Canadian lenders ie RBC, Scotia Bank. This is big business in the USA but I don't here much about it in Canada. The USA brokers have no experience dealing with Canadian Banks. The Canadian Banks must be selling off their notes to someone. Any perspective on this???



Thanks

Mike 85

 

[bizaro86]

[quote user=Mike85]The Canadian Banks must be selling off their notes to someone.



Not necessarily. The vast majority of foreclosures in Canada would be on high ratio mortgages, which means CMHC takes the property back and sells it. The Canadian banks are very large on average, and because we didn't have as big a real estate crash here there were many less foreclosures. I doubt the banks are selling their foreclosed mortgages en mass.



I've bought a number of foreclosures from the banks directly, after the foreclosure had occured and the bank owned the property. I've never heard of the banks selling the notes.



Regards,



Michael

 

[Thomas Beyer]

Some very specialized lawyers do that here in Canada. Not a common business, but it is done, but very rarely because most of the underwater mortgages are CMHC insured; thus no risk for the bank as they get full face value.



CMHC is not designed for homeowners, but for banks, so they can lend at low rates to entry level buyers. Banks have lately also insured, behind the scenes, huge blocks of regular mortgages, less than 80% LTV to reduce their risk.



CMHC has a website where they list properties they took over, usually in remote places. Most properties CMHC took over get sold via the regular court system using a realtor and MLS.



Since CMHC has deep pockets they have no need to sell mortgages for a discount.