When a homeowner falls behind on mortgage payments (often 3 months) and does not have the ability in the foreseeable future to catch up, the banks take control and foreclose on the property. Once the lender has started the foreclosure process it is rarely ever reversed. Mounting legal fees, late interest charges and accumulating debt make it near impossible for a homeowner to keep their property. Homes that have gone into foreclosure are often listed at lower prices and are on the market quickly so banks can recoup monies lost. Other important facts to know about foreclosures properties:
Court and judicial sales of properties that have gone into foreclosure simply means that a judge from the Court of Queens Bench in Alberta will decide on which fair offer to accept regarding foreclosed properties. A real estate agent will take an offer on a court sale to a lawyer who then presents it to a judge. There are a few key points to remember with court sales.
Grow-Op homes are residential properties that have been used to grow marijuana, commonly in basements. When discovered by authorities these homes are seized and foreclosed by the provincial government. Grow-op homes can be a gem for homebuyers and property investors. These homes are often sold below market value at a reduced price and do not stay listed for long. Important notes you need to know about grow-op homes are:
It is not just court-sales, foreclosures and grow-op homes where you will get deals from, motivated sellers are often where the best deals are made, if you can find them. Motivated sellers often have to list their homes due to employment change, job relocation or financial reasons, just to name a few. Established real estate agents with strong networks can locate these listings very fast and have you viewing them just as fast. There are other great investment properties that get listed and fly under the radar, everything from handy-man specials to estate sales to homeowners that need to sell quickly. An experienced real estate agent is a great resource that can spot a deal far in advance.