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Buying bank-owned and court-ordered foreclosures for primary homes and/or investment properties are not for everyone. More rules must be followed, and more risks to be taken. However, with the help of qualified, experienced Realtors®, buying foreclosures can be a rewarding venture. Contact us anytime to see if foreclosures could work for you.
Buying Calgary Foreclosures Frequently Asked Questions - FAQs
The Owner Stops Paying the mortgage
Does the owner have any equity left in the property?
If No Owner Equity, Then Title goes directly to the bank, lender or insurer. The Bank, Lender or Insurer will list the property for sale
If There Is Owner Equity, The property is listed for sale by the Court of Queens Bench of Alberta. The owner still has the option to redeem the property
Important Information To Know When Buying Alberta Foreclosures
|Offers To Purchase a Foreclosure in Alberta||The Banks||The Courts|
|Are Conditions Allowed?||Yes||No|
|Will They Counter Offer?||Yes||No|
|Can you set the possession date?||Yes||No|
|Are Appliances Included?||No||No|
|Will any repairs be made?||No||No|
|Are Real Property Reports Included?||No||No|
|Are Condo Documents Included?||No||No|
|Are there warranties on anything?||No||No|
|Do I put a Deposit with the Offer to Purchase?||Within 3 Days||Yes, with the offer|
What Are the Conditions when buying an Alberta Foreclosure?
The most common conditions on Offers To Purchase a home include Subject To Buyers Financing, Subject To Buyer's Approval of A Home Inspection, Subject to the Sale of A buyer's Home, and subject to buyers' due diligence.
What Are Counter Offers?
When you make someone an offer on anything including a house chances are you will get a counteroffer. With foreclosures listed by the Court of Queens Bench of Alberta, you will not get a counteroffer.
What Are Foreclosure Possession Dates?
The foreclosure possession date is the day the money for a house gets transferred from banks and lawyers. After the lawyers are happy with everything then the buyer gets the keys to the property.
Why aren't appliances included?
Bank Owned and Court Ordered Foreclosed Homes are Sold "As Is". The banks and courts have never seen these homes and have no idea if appliances or anything else works. Therefore they do not include anything in the sale. If appliances are in the house on possession day, they are part of the deal then.
Why won't any repairs be made?
Alberta Foreclosures are priced "As Is". Banks and courts do not hire tradespeople to do anything other than stop by the property on a regular basis to make sure the property is secure. They are not in the fix-n-flip business.
What Are Real Property Reports?
A Real Property Report is best described as showing you in blueprint form what you are buying that you can't see. Where is the property line? Are there gas lines or water lines running under the property? Is the fence on your property or the neighbours? A Real Property Report is not supplied by the courts or the banks when selling a foreclosure.
What Are Condo Documents?
Every Condo is part of a Condo Board. The Condo Board meets regularly and records the minutes of the meetings. The board hires management companies and accountants. The Board in the general administration of the property generates a lot of paperwork. Condo Documents like Real Property Reports will tell you what else you are buying into that you can't see with your own eyes.
What Are Warranties?
Warranties are those annoying things they try to upsell you on every time you buy something. In a home sale, a warranty covers a lot of ground in a normal sale. In the sale of foreclosure in Calgary, there are zero warranties on anything. Nothing is backed by anybody. When you buy a foreclosure and something is wrong, tough luck, that's one reason you got a great price.
What is a Redemption Period?
In the Redemption period of a Calgary Court Ordered Sale, the owner is still on legal title and has the option to make good on all arrears and penalties to reclaim the property and stop the foreclosure process.