Interests of Lenders and Banks

[earthacq]

While I have been quite successful with tax deeds in the US, Canada is a new ballgame to me.
The process seems straight forward on paper, but execution in real life is a more difficult matter.

In the Us, if a parcel coming up for auction contains a house that is mortgaged, it is common that the bank/mortgage holder will pay the back taxes on
the property and add to the poutstanding mortgage. Rarely, the bank will send a representative to just bid and buy the property.

My question is what is common in Canada?

The reason I ask is that I am interested in an upcoming parcel that has about 200,000 of encumbrances to vartious lenders but **might** still be a good buy as the property is worth more, I believe. I have yet to do a close up inspection of the property but I will be doing so within the week.

Thank you in advance for your answers.

[jfinlay01]

In Canada, or at least in Ontario, lenders receive notification 1 year in advance of any tax sale. This advises them and the property owner of the date the sale process will commence. All major lenders will usually pay the tax arrears before it goes for sale.  I have also seen it that payment arrangements are negotiated between lenders, the owner and the municipality to avoid tax sale.

Good luck.

[Frank]

The mortgagees will usually ensure that the property does not go to tax sale, unless there is a problem with the property (eg. the value of the property due to contamination, etc.. is lower than the amount of the liens on it).