Foreclosed properties

[RX_EVOLV]

Where can I learn more about buying foreclosed house in Calgary? what are the requirements procedures? What are the risks? Where can I find out which houses are foreclosures

[barmanjay]

There are 2 types of these properties

Ones undergoing the foreclosure process - Court of Queens bench

and

Ones that have already been foreclosed on - Bank owned.


Most of these are listed on the MLS

Any Realtor who knows his back end system well can easily search for only these types of properties.

The properties that are in the process and are listed by the Court of Queens bench are the most risky to get involved with.

In many cases the owner still lives on the property, and in rare cases, you don't get to view the property from the inside.

The judge decides who purchases the property, almost always the highest bid with NO conditions.

- If you do get to preview, have somebody with you that knows construction and can be an extra set of eyes for you.
- Have your mortgage already 100% pre-approved,.. NOT pre-qualified. Have an approval paper in your hand with an amount of total approval.
- Judge decides your possession day
- If there still is someone living in the house, you are responsible for removing them after possession.
- There is no recourse if the house is trashed in the meantime.

If there were 2 mortgages and it was the 2nd mortgage holder that foreclosed on the owner,.. the First mortgage holder will likely buyout the second mortgage through this process. Then foreclose on the owner again to keep the property.


Most of the foreclosure properties that you might find will have been foreclosed on already and be bank owned. Think of these as regular for-sale properties.
Most of the time they need work and the prices have been adjusted to compensate.
You may have a home inspection and you can have a financing condition. Just keep in mind you will be required to sign a "schedule A" - basically stating you are buying a property "as-is, where-is" the Bank will hold no warranty or representations on the property.
They will also not re-negotiate if the home inspection is not favourable; you are assumed to purchase this property in the state as you see it; the home inspection is for your benefit only to know what you need to repair - not the bank to repair or discount.

Some Banks are more realistic on their prices than others.

There are deals there, but not without sweat equity from you.

Good Luck

[sputnik]

Is it just me or does it stink like Robert Kiyosaki in this thread?

At any rate, Jordan already has a mailing list where he sends subscribers new foreclosure listings.

http://forums.beyond.ca/st/327928/foreclosure-update-list-/

[CompletelyNumb]

Except Robert Kiyosaki would get the house for $500 free and clear, Re-sell for $1 million, and go home and polish his navy medals and Xerox awards. Like a boss. :bigpimp:

[mr5oh]

We bought a foreclosed home.
2000 sqft bungalow built in 1992.
The house sold for 615,000 in 2007, and by the time they forclosed, $417,000 was owing. We took possession in March of this year. The house was pretty filthy inside.
For the most part, it was in good shape. All we really had to do was new carpets, sand the hardwood and repaint.

However, my previous home was a new custom build. (I was the builder)

We ended up ripping everything out. I had my electrician add potlights everywhere (added 42 potlights)

Custom kitchen. Ripped the hardwood, carpet out. and did the whole main floor in 3.5" red oak hardwood (Except for bathrooms)

All brand new finishing (trim, doors, closets, etc) The house inside looks brand new.


Now, we're finishing the basement and have a decent budget for it. At the end of the day, we'll have 4000 sqft of finished space for 525-550

The house was owned by scotia bank. They weren't the easiest to deal with but we loved the location.

would I do it again? Yes, but not to this extreme. If we didn't want to move in I would just throw 10-15 grand and flip it.

I found the house on MLS. My wife's friend is a realtor and were pretty much forced to use her. :(