Discover how Fibonaii Group Inc. manages mortgage recovery when a borrower defaults. Learn how we protect investor capital through secure private lending.
For many investors entering the world of mortgage lending, the idea of borrower default can feel intimidating. At Fibonaii Group Inc. (FIG), operating as Investment Solutions, we believe that understanding what happens during a default—and how we manage recovery—is essential for building confidence in private lending and mortgage investments.
Understanding the Risk: What Is a Default?
A borrower is considered in default when they fail to meet the terms of their mortgage agreement. This usually starts with a missed payment, but it can also involve property tax arrears, insurance lapses, or failure to maintain the property. At FIG, every mortgage investment we manage is backed by real estate security, and our contracts include clear enforcement rights should default occur.
Proactive Risk Management
Our approach to mortgage administration is built on prevention. Before a mortgage is ever funded, we conduct detailed due diligence, assess borrower creditworthiness, and enforce conservative loan-to-value ratios. Once a mortgage is active, we monitor payment schedules and property status closely. The goal? Detect issues early—before a borrower becomes unresponsive or delinquent.
When a payment is missed, we immediately begin outreach. In many cases, the default can be resolved amicably through a repayment plan or short-term extension. These options help preserve the investment and minimize legal costs while keeping the borrower accountable.
Legal Remedies and Property Recovery
If no resolution can be reached, we move into the formal mortgage recovery process. Depending on the province, this may involve power of sale or foreclosure—legal pathways that allow the mortgage holder to recover the secured property and sell it to repay the debt.
As the licensed mortgage administrator, Investment Solutions oversees this process from end to end. We work with trusted legal and real estate professionals to manage timelines, legal notices, property inspections, and eventual sale or possession. Our focus is on maximizing recovery value and minimizing delays.
Prioritizing Investor Protection
The most important element of any private mortgage investment is the security it provides. Unlike stocks or mutual funds, your investment with FIG is backed by real property. In most cases, our investors hold first-position security—meaning they are paid out before any other lien holders in the event of a sale.
Even in rare default situations, recovery rates in first-position private mortgages remain high. Our active involvement in recovery ensures that every investor is kept informed and that their capital is managed responsibly.
A Trusted Partner in Private Lending
At Fibonaii Group Inc., through our operating brand Investment Solutions, we specialize in providing secure, income-generating mortgage investment opportunities. By combining conservative lending strategies with active mortgage administration, we help investors grow wealth while reducing exposure to unnecessary risk.
If you’re considering diversifying into private lending, let us show you how we protect your capital—every step of the way.
� Contact FIG Investment Solutions today! at info@fibonaiigroup.ca or visit us at https://fibonaiigroup.ca
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