Private Mortgages for Foreclosures, Tax Sales, Auctions, and Estate Liquidations
At Assadi Private Capital, we fund mortgage transactions for the acquisition of distressed real estate assets across Canada. These include properties sold under power of sale, foreclosure, tax recovery, estate liquidation, receivership, and judicial order.
We understand that these transactions are time-sensitive, complex, and often rejected by institutional lenders. We specialize in evaluating non-standard files quickly, and we lend against real value, not policy benchmarks or underwriting checklists.
What We Consider ‘Distressed’
We provide purchase financing for properties that fall into one or more of the following categories:
• Foreclosures / Power of Sale , lender-initiated disposals through court or contractual process
• Tax Sales , municipal recoveries of unpaid property taxes
• Court-Ordered Sales , judicial direction following litigation, fraud, or receivership
• Estate Liquidations , properties sold by executors or heirs, often in poor condition
• Tenant-Occupied or Vandalized , including squatters, drug houses, or fire-damaged homes
• Auction Properties , purchases through sheriff sale, court auction, or private liquidation
• Vacant, condemned, or non-financeable assets (by institutional standards)
We also fund acquisitions below $100,000, where banks and MICs typically decline due to loan size.
Why Distressed Assets Require Private Capital
Traditional lenders avoid distressed property purchases for several reasons:
• Uncertainty of possession
• Physical disrepair or safety issues
• Legal risks or encumbrances on title
• Fast closing timelines incompatible with internal underwriting
• Minimum mortgage sizes that exclude lower-value deals
Yet many of these assets are value-rich and strategically located, and buyers often have the capacity to close, restore, and exit profitably, provided they can access short-term capital.
We step into this gap. We issue terms quickly and can fund in days, not weeks.
Who We Lend To
We provide short-term purchase financing to:
• Real estate investors purchasing distressed properties for resale or rental
• Small developers or builders acquiring teardown or infill lots
• Buyers working with realtors or estate trustees on liquidation sales
• Cash buyers needing leverage to pursue multiple deals
• Contractors acquiring “as-is” homes for renovation
• Court-directed buyers seeking compliance financing (e.g. 10-day closings, judicial approval)
All transactions must be introduced by licensed mortgage brokers or regulated professionals.
Loan Parameters
• Loan amounts: $30,000 to $500,000+
• Max LTV: typically 65% – 75%, adjusted for risk, location, and condition
• Security: 1st or 2nd mortgage on the subject property
• Term: 6–12 months (interest-only)
• Funding timeline: as little as 3–5 business days
We fund distressed acquisitions across Manitoba, Alberta, Atlantic Canada, and select communities in Ontario and Saskatchewan.
Common Use Cases
• Purchasing a foreclosure property in a fast-closing auction
• Acquiring a tax sale home at a municipal minimum bid
• Buying out heirs in a disputed or delayed estate sale
• Taking possession of a vandalized home for flip or resale
• Acquiring a property with no functional utilities, kitchen, or roof
• Buying a property that appraisers or insurers have flagged as “unfinanceable”
Why Work With Us
• We understand distressed real estate markets
• We are not deterred by condition, title issues, or occupancy challenges
• We do not require clean credit or income proof
• We underwrite based on exit potential and real property value
• We respect broker-client relationships and do not compete for renewals
We are one of the few direct private lenders in Canada that routinely considers low-value, condition-challenged, or time-constrained property deals.
Let’s Work Together
If you are a broker working with a client who is acquiring a distressed or auctioned property, we want to hear from you. We can issue term sheets within 48 hours and often fund before institutional lenders would complete internal review.
Submit your deal for review through our broker portal or contact us directly to discuss. Assadi Private Capital is actively lending into distressed acquisition markets, and we are ready to move when your clients need capital the most.