If you are interested in buying a foreclosure listing and would like to discuss it with an expert, call the Kinfolk Real Estate Group today.
Buying a foreclosure property offers the potential for a great deal, as long you have the right advice and find the right opportunity. In order to do so, it is important to fully understand the foreclosure process.
Buying a home that is in foreclosure works somewhat differently to a typical home sale as, rather than dealing with the homeowner, offers must be made through the court. Offers for foreclosure listings also have some specific requirements.
Click here to see a list of Abbotsford foreclosures.
Click here to see a list of Mission foreclosures.
Click here to see a list of Chilliwack foreclosures.
What is a foreclosure?
A foreclosure happens when a homeowner either misses mortgage payments or is no longer able to pay the monthly dues. This typically means the homeowner is in financial distress, so the property is referred to as “distressed.”
Foreclosure is a legal process aimed at enabling a lender to recover money when a borrower (homeowner) is no longer able to pay back their debt (mortgage). As the property stands as security on the loan, the lender repossesses it and uses the sale to recoup the debt.
Buying a foreclosure listing can be a great opportunity to make a saving when buying a home, as long as you find the right opportunity.
What you should know about buying a foreclosure listing:
- Unlike in a regular home sale, offers on foreclosure properties are considered subject-free.
- Offers must be accompanied by a Schedule A form. This frees the owner and lender from responsibility.
- It is vital to do due diligence before buying a foreclosure property.
- Other buyers are able to make offers up until the court date. The highest offer is generally chosen by the judge, but other factors may be considered.
- While appliances are not usually included in a foreclosure sale (as they are not fixed), you may find some when you take possession.