Ep.99 | Lessons From Our First Foreclosure: Risks, Realities & Recovery in Private Lending

In this milestone 99th episode of the Canadian Private Lenders Podcast, hosts Ryan and Neal share an inside look at Keystone’s very first foreclosure. From red flags during underwriting, to borrower challenges, expired insurance, and the unexpected passing of the borrower, this case study highlights the realities private lenders face when enforcement becomes necessary.

They break down the legal process in Nova Scotia, the importance of hiring experienced lawyers, carrying costs during enforcement, and why conservative loan-to-value ratios are critical. Most importantly, Ryan and Neil explain how they navigated the situation, recovered their capital, and what lessons they’ll carry forward into future deals.

If you’re a private lender, broker, or investor, this episode provides essential insights on foreclosure best practices, risk management, and protecting your portfolio.

Show Notes:

00:00 – Episode 99 milestone & last recording in the old studio

01:14 – Introducing today’s topic: Keystone’s first foreclosure

03:13 – Borrower red flags & why underwriting discipline matters

05:43 – Insurance lapse & borrower’s unexpected passing

07:34 – Hiring enforcement lawyers & navigating Nova Scotia’s foreclosure process

10:00 – Timeline realities: 5–6 months without income, still paying investors

11:43 – Property access, appraisal, and quick sale with multiple offers

13:11 – Recovery: full repayment plus surplus funds to borrower’s family

15:21 – Best practices: strong mortgage commitments, covenants & assignment of rents

20:26 – Lessons learned & advice for lenders facing future foreclosures

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

Find Neal On:
Instagram: @neal.andreino
LinkedIn: Neal Andreino

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