Looking for that sweet deal? Considering purchasing a foreclosure? Things you should know... - Remax Nova Real Estate

Published 28 December 11 08:42 PM | Merv Edinger 
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Learn How to Find a Great Foreclosed Home, Buy It Below Market Value and Avoid All of the Costly Pitfalls Most Buyers Face…

There are always many foreclosure, aka bank repo, homes on the market. This is nothing new.

Why may I consider purchasing a foreclosure property? Homes are easy to find. Banks are taking lower offers
Bidding wars are no longer common (Only if you know where to find the deals).
The homes are in much better shape. Some brand new homes are foreclosed upon! Opportunity to lock in massive profits at the bottom of the market.

In Nova Scotia, the bank/lender will post upcoming auctions for foreclosure properties & tax sales at the Court House. They will list the day of the auction, the amount due on the loan/mortgage, the address of the property, & the name of the borrower.

Some true bargains can be found at the auctions. Keep in mind though, that the auction can be cancelled upto the morning of the auction ( meaning that the person/s in arrears have until that morning to make make arrangements to repay or catch up on their debts ). A lawyer representing the bank/lender will be at the auction to bid on behalf of the bank. The lawyer will bid upto the amount owing + back payments + interest + sheriffs fees + court fees. If you win a bid at the auction, you are required to have a 10% nonrefundable deposit on the purchase & will have a set date to obtain financing for the purchase. This can be very risky if you have not had the opportunity to visit the property, which normally you will not be able to. You may incur additional Sheriff's costs to evict the current home owner/s. You are also not allow to simply through any of their personal belongings that have been left in the property. You may be require to provide them with a set time period to collect their belongings. Many properties that are facing foreclosure are vandalized. They may have unforeseen " issues ". We know of circumstances where the home owner flushed cement mix down the toilets to seize the entire septic system of the home they were about to lose.

If noone else is interested in property or not willing to bid to the bank/lender's required amount, the bank/lender will probably list the home for sale. You will notice that many of these homes are listed in " AS IS WHERE IS " condition & will require that all offers be accompanied by a Bank Schedule, & open for acceptance for a set number of business days. In these cases, you can view the property & do an inspection prior to submitting an offer on the property. Note that with bank repossessed homes, NO utility costs, warranties, plot plans, property condition disclosure statements will be provided as the bank/lender has never lived in the property. Unlike, occupied homes, you do not need to worry about insulting the home owner with a lowball offer. To athe bank/lender it is business & business only. They hope to recoup all of their investment if possible or at the very least, as much of it as possible. We have dealt with bank repos where the bank/lender took nearly $100,000 loss on the mortgage in order to sell the property & recoup some of their losses.

Can money be made on bank repos/foreclosures? YES! I know of one real estate agent who has a large real estate investment portfolio himself from buying foreclosure proeprties. He has also focused much of his business on the subject. There are also many book available written by real estate investers who have profitted from these proeprties.

If you are considering expanding your real estate portfolio, or simply looking for a good deal for your first home & are considering purchasing a bank repo/foreclosure property, feel free to contact me for homes available in the Halifax Regional Municipality & beyond.

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# Ann said on November 30, 2017 6:00 AM:

This post contains helpful facts which are the helping hand to the readers. The post was very helpful and you have covered the whole topic with all small details. Prepare and share more such beneficial information.

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