Even though the American real estate market has seen a rocky past 5 years, Canadian real estate have remained relatively strong in comparison. However, buyers can still expect to see many available foreclosures across the country that first buyers and investors can benefit from greatly. Before making an investment, people should make sure that they are considering all of the related pros and cons of how to buy foreclosed properties.
Foreclosure in Canada
While Canada and the U.S. have similar foreclosure procedures, there are some subtle differences that will impact an investor’s purchase. This is because owners of foreclosed properties are subjected to Power of Sale and Judicial Sale legislation when they decide to sell. Power of sale gives the owner the right to sale the property without court intervention, while judicial sale requires courts approval before the sale can be made. The method that applies is based on the province. For
instance, if the property is located in Alberta, Manitoba, British Columbia, Saskatchewan, Quebec or Nova Scotia owners are required to follow Judicial foreclosure sale procedures. On the hand, if the owner’s properties are located in Ontario, Prince Edward Island or NewFoundland, investors should be prepared to adhere to Power of sale foreclosure procedures.
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Be Careful When Making a Purchase
Though these foreclosed homes may be relatively great deals in the long run, it is important for investors to be careful when making these purchases. Since these homes are being sold due to financial despair, proper maintenance is often lacking. Therefore, to bring these homes up-to-date with the proper renovations, they may be very expensive to repair. Also, if the home is in an area that is experiencing a downward trend in home sales, investors will often have a difficult time in recouping their investments.
Seek Assistance From Professionals in the Industry
Its is also important to note that these purchases can be quite tricky for even the savvy investor. So, people should always seek assistance from a mortgage broker and a real estate agent. Since these professions are well versed in the industry, they can help the investor with walking through the process and negotiating the best price for the property.
Starting this search has been made easy since all prospective investors need to do is access the site Online Real Estate Auction Platform bidwin.org. When the investor follows the appropriate process and handles them correctly, the possibilities in this area are endless.