Foreclosures in Canada
September 2, 2010 by Community Admin · Leave a Comment
Since all of us are watching the U.S. Real Estate market with all the foreclosures it begs the questions:
- How can I purchase these properties as a Canadian
- Can I locate and purchase foreclosures in Canada
Let me address the Canadian Foreclosures First.
Beware of any company trying to sell a list of foreclosures. All these software programs do is take words from the comments on the MLS and try and create a list. Banks, Court of Queens Bench, and CMHC do not provide such a list. In fact when we market and sale “Bank Owned” properties they forbid us from putting foreclosure in the comment section.
When a home is being foreclosed on the owner must make an appearance in front of a judge. The judge will decide how long before that person either brings the mortgage up to date or must vacate the property. Its called a redemption period. It can range from 30days to 6 months depending on the judge’s decision. During this time the property will usually get listed with a brokerage. Offers will be accepted right up to the date the owners move out. At that time all offers are reviewed by the judge and presented to the lender. If the lender is not satisfied with any of the offers then they can take ownership and re sell as Bank owned. Many times the insurer CMHC will take the property back. Once the property is taken back then the insurer can and usually will put the property back on the market with a brokerage.
There are opportunities to get a bargain but remember all these properties are sold as is where is without any history provided. You really need someone who knows what they are doing to protect your interests if you are not familiar with the process.
The US market is also tricky. It can be tough to get a mortgage if your Canadian so get that looked after first. If you are paying cash its easy but be careful with your intentions. Are you buying to rent it our or just hold it. The rental market in the US is tough. Also beware of property taxes as a Canadian, some states charge triple if you are from Canada which makes the monthly cost too high.
Rob Vanovermeire
Maxwell City Central, broker
C. 403-870-8704
F. 403-451-1514
