Source: Alok Pathak (from WhatsApp)

If you have a 1st mortgage that has no 2nd, you credit bid, pay the DIP, and take over the property.

If you have a 1st mortgage with a 2nd mortgage, you can credit bid, pay the DIP, and take over your property. In this scenario, the 2nd mortgage holder could credit bid to pay you out. They would pay your principal, interest, fees, everything that is owing to you, and the DIP. If you have a small 1st with a larger 2nd, this might make sense for them. If you have a large 1st with a smaller 2nd, they might just take the loss.

Source: Linda Plater (from WhatsApp)

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From Candice Schultz, who is Legal Documentation Specialist, Mortgages, Olympia Investment Account Services, inquiring about the credit bid process as it relates to Olympia.  Here's what she said:

I have heard reference to PINs pop up in WhatsApp chat a few times over the past few months but didn't know what this was for. Today I found out that Chaitons did a lien search of all properties. Not sure what the PIN does for you; maybe someone can explain it. I do know there was never an email explaining this. 

I don't know all the details of this but apparently the LRC members went to extensive effort to go to all these northern towns and check out the condition of all 400+ properties. They created a report that due to privacy issues was never published. I recently found out that you can request this information from them by sending an email to: balboasecuredlenders@gmail.com.

As we approach the conclusion of the CCAA/SISP process, with the potential for KSV to honor the credit bids submitted by secured lenders, it's crucial to be prepared to act swiftly when an Exit opportunity arises.

The lenders may require financing for several reasons, including: