What You Need to Know about Foreclosures in Canada
A foreclosure is a process that occurs when homeowners/borrowers lose the rights to a property by failing to keep up the mortgage payments. That process works via the following steps:
· Payments are missed
· Public notice is posted
· Pre-foreclosure period of 30 to 120 days occurs
· An auction is held to sell the property
After the foreclosure, if the property is not sold at auction, it becomes a bank-owned property. Then the property is sold either by listing it with a realtor or selling it at a liquidation auction. If you are interested in buying foreclosures, there are a few things that you’ll need to know.
Finding foreclosed properties is fairly simple. They are usually listed in the same manner as other homes. You can search government and bank websites for them or just go online and search for foreclosures or bank owned properties. You can also search online for foreclosure auctions. But, after doing this, your best option is retaining a real estate agent to help you with the entire process.
Once you’ve found a property or properties that you are interested in buying, you should make an offer through your real estate agent. The bank must approve your offer and, in some cases, the approval of an investor in the property is also required. Generally, a bank owned property will be priced at market value because they want to sell it fairly fast, so submitting an offer that is reasonable is important.
The condition of the property could be unknown to the bank, so getting a professional home inspection is very important. In addition, you should expect the possibility that the closing on your chosen foreclosure could take a bit longer than usual due to unforeseen issues that could arise, like title issues.
If you’re looking to buy a home in Vaughan, ON, trust the professional experience of a qualified real estate agent. Contact Schuren Sriskandarajah today: 416.333.9393.