Bank is threatening foreclosure on both houses
I own a house that is being rented, as well as a house that was started construction for us to move into and sell out other house( which is now rented). In the meantime we have moved abroad and have not been able to sell either, our unfinished house has not sold and we are getting tremendous pressure. Our rented one still pays bills for that one. Bank is threatening foreclosure on both, but we have no other assets as they were sold long ago, nothing left in the bank. Just these two houses. We have accepted that we won’t make a profit or any money selling, should we file for bankruptcy? Should we just walk away? What are the options considering we no longer live in Canada? We don’t own property here or even have much in the account so can’t pay anything anyway! Options, please!
The first step to consider is what is the bottom line amount the properties will sell for. If it is break even or a small loss, you may want to cover the loss. If the potential loss is significant and you will be unable to cover the loss amount, I would recommend that you just let them go to the bank. The bank will take care of the renters in terms of getting them to vacate the property. If there is a deficiency balance owing to the banks for either property, the bank may pursue you for the deficiency. You can then decide your options. Factors to consider will be how aggressive is the bank in trying to collect, do you intend at some time to return to Canada and are you in a position to offer a settlement.