Recent Listings in Alberta
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| Bank Owned Homes and Foreclosures at Massive Discounts in the Alberta province. |
Purchasing a foreclosure property in the Alberta province appears to be a lucrative option and it is easy to find one that may not have been often in your range. However, if a property deal looks too good to be true, it may just be.
Prospective buyers must realize that buying a foreclosure property in Alberta is different from simply buying a home. And while magazines and television often tell the stories of great flips, foreclosure homes come with a certain amount of risk that the prospective buyers must be aware of before making an offer on a foreclosed property.
In broad terms, bank-owned properties and foreclosed properties are the ones on which the owner defaulted to pay up their mortgage and the lender simply repossessed the property.
Foreclosure properties in Alberta, Canada are sold either by a power of sale that allows the holder of the property to simply sell it without any supervision from the judicial system, or alternatively by a judicial sale, under the supervision of the court.
Information about such foreclosed properties in Alberta (and other provinces of Canada) can either be obtained from the court system (which is a very time-consuming process), or accessed online on listing services that regularly list foreclosures of all types including bank-owned homes, bank foreclosures and foreclosure auctions across Canada.
Simply follow the following tips once you have decided to purchase a foreclosure property in Canada:
- Make a thoughtful offer: buying a foreclosed property not only requires you to know when a foreclosed property comes on the marketplace, it also requires you to be prepared in order to make a quick offer before someone else walks away with the bargain at stake. Remember, when you are buying a bank-owned home for sale in the Alberta province, you're dealing with a bank and not the homeowner. It's simply a business transaction for the lender who will accept your offer if the numbers match the bank's expectations. Such lenders often prefer an unconditional offer, so conduct some in-depth research before establishing the price you’d like to offer. Ascertain such amount by keeping in mind the market value of such property, the outstanding loan against it, potential repair costs and any other liens against such property. The right price should be lower than the market value but higher than the outstanding loans – thus, a win-win situation for both parties. Being aware of the stage of foreclosure of the property will guide you on whom to contact for making your offer. In particular for bank-owned properties, you'll need to contact the asset management department of the appropriate bank holding such property.
- Personal Research: the most important issue that all prospective buyers must be aware of is that foreclosure properties are sold on an as is where is basis without any of the usual warranties. Considering that the owner of such property had been in default, it may not be surprising to find the property in a run-down condition. However, once you sign the dotted line, such property, with all its defects and benefits, is squarely your own. Therefore, doing your own research will go a long way in helping you make a winning decision. You must inspect the property physically, ask the neighbors for inputs and make your offer subject to a home inspection, if possible.
- Get loan pre-approval: while there is often less room for negotiation when you opt for a foreclosed property, being pre-qualified for a home loan can help you negotiate in better terms. Having a pre-approval not only tells you how much you can afford to invest, but also ensures that the repossessing lender, who obviously doesn’t want to keep such property on its books for too long, is more open to negotiations with you, perceiving you as a serious buyer.
- Lastly, keep yourself abreast of the marketplace by subscribing to an online listing service and educate yourself. Apart from finding information about distressed properties in your preferred location across Canada, you can also access informative blogs, property reports and a host of other information about the foreclosure property market in Canada, here.
