Let’s chat about The Truth about Calgary Foreclosures. Ever since HGTV became popular and flipping homes has become all the rage to make a quick buck, foreclosures have become more popular than ever. But are they really that great of a deal? While in some cases a foreclosure can be a decent or good deal, there are many things to consider before leaping into the purchase of a foreclosed property.
Let’s start from the beginning and discuss what a foreclosure is. A foreclosure is the transfer of full ownership in a property to the mortgage lender. In a foreclosure process, the mortgagor, or homeowner, gives up all rights to the property, including any equity value built up in the home. Once your mortgage lender forecloses on your property, they own it. To buy a foreclosure it is a bit of a different process then buying a normally listed home. The foreclosure process can take anywhere between a couple of months to several months dependent on each individual situation. A lot can happen to a property within that time frame. Once the original owner stops making payments on the property they are typically given notice to vacate. A lot of the time these previous owners will take anything they can of value that is literally not nailed down.This can be anything and everything from the appliances to the flooring in some cases.
As a buyer you might have interest in the property and decide you may wish to pursue an offer. A lender (in this case also the seller) may or may not allow for you to have conditions as part of your offer. So if you want to do a home inspection that is not a problem but you will want to have one done prior to writing the offer to present to the lender or court is some more rare occasion. Basically the bank won’t provide any warranties on the property, so it is as is, where is, how is. o if the night before possession all the appliances are stolen from a break in, you are just out of luck, and the same can be for any other damages that might happen up until possession. So a fast possession is typically in your best interests if you still decide to pursue a foreclosure property in Calgary.
However this also means that the houses are typically sold for less money then the house next door. It also means less people will be interested in buying the property too. With all that it might mean you walk away with a steal of a deal but you also might be left with a giant renovation. Foreclosures are risky but they can also have huge rewards.
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