Foreclosed homes in Canada can be sold in two ways:
-
Courthouse auction sale. You need to check the courthouse
assistant/clerk to verify any available sales and the dates.When the
bids do not cover the mortgage balance, the mortgage lander (most times
the bank) will buyout the property. Note that, you cannot finance to
buy such a property. You need to pay the balance on the date of the
sale. No house inspection is allowed. You take it as it-is.
-
Realtor or MLS listings. Most foreclosure homes in Canada are sold by
realtor even before they are listed on any foreclosure listings in
Canada. The procedure is like buying a regular property: you can
finance the house, do house inspection and pay no commission to anyone.
How to buy foreclosure homes
On the courthouse sale, you have no option but win by the highest bid.
To
buy a home that is going into foreclosure from either the owner or
the realtor, you simply make an offer to the home owner. If the offer
is not sufficient enough to cover the mortgage balance, the mortgage
bank has to approve the offer in this case. Or you will likely receive
a counter offer from the vendor. If the house is already in
foreclosure, you only need to deal with the bank or the representative
of the bank. To check if a house is going into foreclosure. simply
check with the cityhall clerk.
You
might want to find a realtor who has experience to work for you in this
case. An agent who is familiar with an area where you look for houses
may already has all the information you need. It is always easier to
buy foreclosed homes from the bank directly than to buy at the
courthouse auctions. Try to avoid buy foreclosed homes in court steps,
so you do not have to deal with evicting occupants, house inspection
and competitions from other eager buyers.
