Ep. 89 | Your First Default: How Private Lenders Should Handle Borrower Non-Payment

In this solo episode, Ryan MacNeil breaks down one of the most challenging but inevitable parts of private lending: borrower defaults and enforcement. 

From the first missed payment to legal recovery strategies, Ryan walks you through the entire process with practical tips and hard-earned experience. He covers borrower communication, provincial differences in enforcement (Nova Scotia, Ontario, New Brunswick, and BC), issuing demand letters, working with the right lawyers, and recovering funds after default. This episode is packed with clear guidance, best practices, and professional advice you can apply immediately. Listen and enjoy the show!

Show Notes:

00:00 – Why local legal expertise matters for enforcement

02:00 - What do we do when a borrower stops paying?

03:12 - Key principle: Communication with borrowers is critical

Steps to help protect your investment:

03:41 - Step 1: Recognizing default: NSF, insurance lapses, unauthorized fund use

04:57 - Step 2: Initial communication with the borrower

06:01 - Step 3: Offer a payment plan for the missed payment

07:29 – When borrowers go dark: issuing demand letters

09:11 - Moving to enforcement: foreclosure vs. power of sale

09:20 – Nova Scotia & BC: court-driven foreclosure

10:15 – Ontario: power of sale process and recent delays

11:03 – New Brunswick: judicial sale via King’s Bench

13:35 - Recouping principal, interest, and fees

Resources:

• Keystone Capital Group
• CPLP Instagram: @cplpodcast
• Keystone Instagram: @keycapgroup

Find Neal On:
Instagram: @neal.andreino
LinkedIn

Find Ryan on:
LinkedIn
E-mail: ryan@keycap.ca