What happens when your landlord misses mortgage payments? Jun 11th

You held up your end of the bargain and paid your rent on time—only to learn your landlord failed to keep up with mortgage payments and the home may need to be sold. Panic sets in, as you don’t know if you can continue to call this place your home. Experts say there are a number of ways this scenario can play out, but knowing your rights as a tenant when the bank takes over is a critical first step. 

Kelly Ho, a certified financial planner at DLD Financial Group, said renters need to consult their provincial tenants act. In many provinces the new owner or the bank is required to continue the tenant agreement if the lease term hasn’t ended, but that may not be true for all jurisdictions, she said. “It’s really important for the tenant to know their rights and continue acting in good faith and making sure they don’t let anything slip and that everything’s documented,” Ho said.

Tenants face uncertainty when landlords fall behind

Douglas Kwan, a lawyer and director of advocacy and legal services at the Advocacy Centre for Tenants Ontario, said he has seen more queries from tenants about power of sale situations—when a property is put up for sale by a bank—over the last eight months…