About Calgary Foreclosures

Who Is The Legal Owner And Seller Of Calgary Foreclosures?

Let's start with the legal title registered at the land titles office of Alberta. All real estate in Alberta has a Legal Title that has the legal address and the owner's name at the least. The Legal Title could also include anything that is attached to the property like mortgages, liens, rights of way, easements, court orders, etc. A person or company must be on the legal title to sell a property. So who is on the legal title in our two types of foreclosures? Bank-Owned foreclosures have the bank on title as the legal owner. This allows the banks much more flexibility to sell these types of properties. The courts on the other hand are not on the legal title. The courts could just transfer legal title to the bank. But when the owner has equity in the property, the court steps in to try and protect as much of the remaining equity as possible. So for court-ordered sales, the owner is the legal owner and could make up the arrears at any time to stop the foreclosure sale from completing.

Are Conditions Ok With Offers To Purchase?

Conditions on Offers To Purchase are usually to give the home buyer time to finalize a mortgage, do a home inspection by a licenced home inspector, review and approve condo documents or anything else the buyer considers their due diligence. The court-ordered foreclosure listings do not allow any conditions at all. The courts will allow you to bring in a home inspector most times, it just can’t be a condition on the written offer to purchase. Bank-owned properties are more willing to consider all buyer conditions.

Will the Courts and Banks Give Counter Offers?

Offers to Purchase in both cases go to a law office for the initial consideration. When the law office sees offers they feel the courts or the banks will consider they forward them. In court-ordered sales situations, the court does not counter-offer. The court usually has many offers to consider at the same time on the court date set and can accept one and reject all others or reject them all and ask buyers to resubmit their offers. Banks however are more flexible. Because the legal title is in their name they will counter-offer. So the courts, no counter offers. The banks, yes to counter offers.

Are Appliances Included?

Neither the courts nor the banks will allow any appliances to be listed in writing on the offer to purchase. If the stove, fridge, dishwasher, washer, dryer, etc. are on the property the day you get possession, in most sales they are yours. If anything is owned by a rental company, they could lay claim to it. Unfortunately, you would also get possession of anything left on the property you don’t want and it’s up to you to deal with. Foreclosures are sold as-is. The banks and the courts hardly ever actually see the property in person and instead rely on market statistics for pricing.

Do Sellers Supply Real Property Reports or Condo Documents to Foreclosure Buyers?

This one is easy to answer. Real Property Reports which show the property dimensions, boundaries, building footprints, utility right of ways, easements, encroachments, etc. are not provided by either banks or courts. Real Property Reports are important and can cost upwards of $900 from a survey company. Condo Documents that include financial statements, reserve fund studies, bylaws, minutes of meetings, etc. are not provided by the banks or the courts. With a non-foreclosure home purchase, these are supplied by the sellers.

How long does it take to get an answer on a Foreclosure Offer To Purchase?

The banks are much easier and quicker to deal with than the courts. The courts are not standing by ready to look at offers as they come in. The law office waits until they receive an offer to purchase, they think the judge might accept. Then they submit the request to the courts to get on the list for the next available slot on the court docket. The court then tells the law office what date and time the offers to purchase will be dealt with. With courts, it could take weeks and months. And all the time it does take to get an offer to purchase looked at by the courts gives the owner that much more time to catch up on the back payments and stop the foreclosure process. Banks usually need a few days, but rarely more than a week to respond to your offer to purchase.

Feel Free To Call or Email Me Your Questions Concerning Calgary Foreclosures
Jerry Charlton 403 831 0842  Jerry@JerryCharlton.com

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