# Where to find foreclosures



## Mechanic (Oct 29, 2013)

A friend and I were discussing some possible foreclosures last night due to the state of Alberta economy. We rarely hear of people getting them. Are they always purchased by realtors for a quick flip or is there somewhere the average person in the market for a house can look ?


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## Spudd (Oct 11, 2011)

According to my realtor, actual foreclosures are uncommon here in Canada. Normally what we get here is "power of sale" which means the bank tries to sell it for market value and they pay the person who defaulted on their mortgage whatever the difference is between their mortgage and the value. Because they sell it for market value, you won't see screaming deals. 

We just bought a power of sale (well, still in the conditional period right now but expect it to go through) and the bank was unwilling to accept our initial very low-ball offers. We did get it quite a lot below asking but only because we were patient and nobody else wanted it.


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## Eclectic12 (Oct 20, 2010)

A couple of co-workers said they have bought foreclosures. I'd have to ask to be sure it wasn't a "power of sale".

When I tried to confirm the split of foreclosures versus power of sale, google returned this.
http://business.financialpost.com/p...hide-foreclosure-information-from-home-buyers

There was also a bunch of web sites claiming to provide access to foreclosure listings.

Then there's this bit highlighting the differences between the Canadian and US systems.
http://www.justinhavre.com/blog/can...t-as-lucrative-as-foreclosures-in-the-us.html



Cheers


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## Just a Guy (Mar 27, 2012)

I've bought several foreclosures over the years. In Canada they go through realtors and are listed on MLS. Of course, when the economy is going up in value, the number of foreclosures is small. The prices aren't all that great usually, as they ask market value. Many have their listings expire since you can buy a similar property, usually in better condition, for the same price initially. Only once the listings have expired a few times are the banks willing to negotiate on the price. 

If You want to have a list, ask any realtor to do a search, it takes seconds to do. 

Real estate is a "trailing indicator", in that it takes a while to see the effects of the economy on the market. People losing their jobs today, won't start losing their homes for a while, then there is the whole foreclosure process which also takes time, usually months. Don't expect to see a rise in foreclosures for another year in places like Alberta, and that's assuming things don't turn around beforehand.


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## Rusty O'Toole (Feb 1, 2012)

Find out whether foreclosure or power of sale is the rule in your province.

There are also tax sales. Not as common in Canada as in the US but may be rife in depressed areas soon enough. There are web sites that show them. They must be advertised in the Ontario Gazette, a legal paper and probably a similar publication in your area.


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## chriswright (Sep 29, 2015)

While sort out of foreclosures situation, right to move there for the Realtor. Realtor take very hefty & positive decision towards the purchase of property. They can do anything on all the property decision.

I agree with the statement as "When the economy is going up in value, the number of foreclosures is small."!





Mechanic said:


> A friend and I were discussing some possible foreclosures last night due to the state of Alberta economy. We rarely hear of people getting them. Are they always purchased by realtors for a quick flip or is there somewhere the average person in the market for a house can look ?


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## gladaki (Feb 23, 2014)

Here is list of foreclosures and judicial listing
http://matrix.crebtools.com/Matrix/Public/Portal.aspx?ID=577476130


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## Rusty O'Toole (Feb 1, 2012)

Your best bet would be to run some ads and try to step in before the property goes to foreclosure.


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## Mechanic (Oct 29, 2013)

It was in the course of a discussion on real estate, neither of us are actually looking for anything right now, more of a curiosity question. Thanks for all the helpful comments.


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## Just a Guy (Mar 27, 2012)

Love those courses...makes everyone really excited to invest in real estate...it's so easy.

Most, of course are put on by people who make money from selling and giving courses, while being sponsored by realtors. 

Not all of course, but make sure you find out how much money the presenter currently makes from his real estate investments as opposed to how much they "claimed to have made". Real estate provides long term, steady income if done right, with very little hands on time in most cases, giving people plenty of free time to give lectures if they were truly interested in teaching...

Strange how that doesn't seem to be the case with most presenters who prefer the quick money which comes from seminars.


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## Taraz (Nov 24, 2013)

There are the court-of-queens bench sales, that take forever to close and usually aren't that great of a deal. You need to be patient and you generally can't have conditions like financing or inspections.

There are also bank-owned foreclosures where the bank already owns the property - these seem like they have more flexibility on price. They can make a decision on your offer right away if they want to. I made an offer on one of these and I might have gotten a good deal if someone hadn't put in a second offer before my counter-offer. 

Finally, estate sales might be your best bet. Granny died and they just want to get their money and move on - sometimes it has been vacant for a while (say due to a hospital stay) and nobody has the cash to fix the place up before selling. My mom got a good deal on one of these, but she spent about $50k on repairs, and she couldn't move in for about 4 months until the plumbing was replaced (supply piping and drains were severely rusted).


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## Mechanic (Oct 29, 2013)

To get the best deals, you need to have cash and/or be able to move quickly. I put in an offer many years ago on a house that had been for sale for a while. Owner had gone and I think a corporation owned it, as they had bought it off him so he would relocate. I put in a low offer and it was accepted. Problem was, as soon as word got out (I blame the realtor) there was another offer at same price right away with no conditions, I think I had 48 hrs to arrange financing and remove conditions, I couldn't get it done fast enough as my then current house was awaiting conditions removal. The guy that bought it lived in it for a year and made a huge profit. Lesson learned.


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## kewlthing (Jan 30, 2010)

Here is my experience. There are mortgage sales in my area that are listed in the local newspapers and at the local auction house where they are held. That's when the owner can't pay so the house goes up for a bank auction then. What I have learned by going to these auctions is that you are essentially buying the house site unseen. Most of the houses have the owners still in them. Therefore they have no obligation to open their doors for you to examine the interior of the house. You can drive by and check it out externally but you basically can't enter their property without permission. The house could have major damage inside. Now if you won the house on auction you may also be on the hook for unpaid expenses, such as the water bill, or the property tax. Also if you win the house on auction you then may have to get the people forceably out of the house. You can attempt to get them out by yourself or hire a sheriff to do it. Then, the evicted owners may be so upset they may thrash the place before leaving or steal everything that is not nailed down. It helps to know some contractors who can do plumbing, roofing, etc. for a good price because you may need them immediately. Owners also have up until the last possible moment before the auction to get financing in order for the house. Several times I have found a house going up for auction then did done my due diligence, got my funds in order, went to the auction and minutes before the house goes for auction it gets withdrawn because the owners have gotten their financing in order. I know some people have done OK with this auction stuff but I also know some people who have lost big money and had major headaches doing this. Beware, contrary to popular belief it is not a get rich quick scheme.


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## Just a Guy (Mar 27, 2012)

Some errors in that last post.

The property must be transferred clear title. Any bills up to the date of possession are the responsibility of the seller. That can also include any unpaid special assessments and outstanding bills/taxes. 

The property must be delivered vacant. Any costs associated with eviction is the seller's. However, you may have to store the possessions for a time period (depending on the value), so that the owner can collect them.


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## donald (Apr 18, 2011)

I have bought 2 proporties in my life(both vacant land)
The first 1:a small plastic sale sign in the front window(private sale by family!did not want anything to do with it)
Turned out to be a gold mine!!!!!!
cleared the old house and built new
bought for xx,ooo.00
sold for----xxx,x00.00
like hitting a calloway big bertha right down the middle with a stiff breeze behind my back(but a warm breeze lol)
I don't think the family i bought from cared nor noticed

My lastest
Banks/city/real estate agents etc etc ect(all the nightmares of a freddy kruger classic lol)
I am still dealing with it and it is still unclear where i stand!(this was almost 3 freaking yrs ago-granted it was rAW land)
anywho
stay the hell away from anything that has a 'bank' or financial 'institution' surrounding a sale!
unless you like to play with fire and stare death in the face lol
the lol's help because the latest property i bought nearly sent me to a physc ward
true story
don't play with fire if your *** can't cash the cheque!otherwise go ahead i guess.be warned ;0
hope this don't sound like crazy mumba jumba
be careful out there Tara z(looking at you)


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## kewlthing (Jan 30, 2010)

Just a Guy said:


> Some errors in that last post.
> 
> The property must be transferred clear title. Any bills up to the date of possession are the responsibility of the seller. That can also include any unpaid special assessments and outstanding bills/taxes.
> 
> The property must be delivered vacant. Any costs associated with eviction is the seller's. However, you may have to store the possessions for a time period (depending on the value), so that the owner can collect them.


Not true. Perhaps we are talking about two different things or perhaps things are different in other jurisdictions but the problems I have mentioned are totally true and can happen. The current homeowner's in potential default can stay in the house until the auction is over and a winner is declared. The moment I win the auction (as an example) and can satisfy the auction requirements, I then own the home. The old homeowners may be negotiating with their bank right until auction time. If they don't get the finances in order and I win the auction, they wouldn't have time to orderly move out. They may harbour resentment and trash the place as a result. Plus they may do something like leave a tap running to purposely destroy the place. I'm on the hook for the damage and the water bill now. I have consulted with my lawyer and the banks and this can clearly be the case and is known to have happened many times. Sure you can chase them and threaten lawsuits but good luck with that. Remember they had financial troubles to begin with. The less the law and lawyers are involved the cheaper it is.
Different scenarios play out with all of these types of auction sales but be aware that it can be a big hassle and profit is not assured.


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## Just a Guy (Mar 27, 2012)

The clear title is true, as are the bills. The vacant property is true of its in the contract to be delivered that way, otherwise your lawyer should not complete the transaction and "late fees" will apply.

I suppose you could agree to allow the tenant to stay, but you'd be silly not to include that clause. 

As for damages, that part is true, as most contracts state "as is, where is with no gaurantee". 

However no decent lawyer would allow it to transfer without a clear title. 

I've bought several such properties over the years, there are risks no doubt, but certain ones can easily be avoided.


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## Spider Pig (Nov 24, 2015)

I recently tried to buy a foreclose in Surrey. The hole process in BC is a pain. I will lay it out for you:

1. Find a listing you really like on MLS.
2. Have your realtor inform you it's a foreclose and not to get your hopes up. :/
3. Get your hopes up that you found a deal because it's been listed for over a year with no interest.
3. Realtor tells you to make an offer with no conditions with a deposit cheque to get the ball rolling because you WILL be going to court.
- A court date will not be set until an official offer has been made!
4. Wait for the date to be set for 3-5 days. Then book that day off work.
-To avoid steps 1-4, go to the Vancouver court house and look at the listings for the day. This would mean never seeing the listing?
You also wouldn't need a Realtor if you did this. But you don't save any money by not having one, so just bring one. If yours is a good friend like mine they will help you keep a cool head.
5. So now is the morning of the court date. You are outside the court room with over 100 ppl, their is 20-30 forecloses happening today. But all these ppl are here for the other places, right?
No, it turns out the place with no other interest, has LOTS of other interest. They where all waiting for you to to start the process.
A lawyer now comes out to the lobby and calls on anyone with interest in X property to gather around him. 
- This is the important part. He wants:
4.1) Your written offer.
Funds can be cash or a pre-approved mortgage for that amount!
4.2) Your deposit cheque.

4.3) No conditions - all offers with condition will be throw out!

4.4) Once you hand him these, No changes can be made.

6. Everyone enters the court room for all the forecloses that day. Wait quietly.
7. Watch the 3 sad case's before yours and be happy that "your" property has been vacant for a year. I say this because the case before mine was a "fresh one" as in the owners were still living in it and were still fighting the foreclose. They brought the whole family too cause a sob scene.
8. Your case is up. Yay! No one is here to fight the foreclose. Double Yay!!
8.1) The Judge does his legal talk.
8.2) Ask's the lawyer for all the offers
8.3) Arranges them from best to worst 
8.4) Ask's the lawyer to read the top offer
8.5) Some snot nosed little **** out bid's you by going $30,000 over market value (this place needed to be gutted) and thinks he has done a good job? 
8.6) You lose. Get your deposit back from the lawyer. Go home, collect yourself, Buy the neighboring property the old fashioned way. Be happy that you didn't have to rebuild the grow-op.


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## Just a Guy (Mar 27, 2012)

Why did you bother to go to the court house?

I bet you wanted this for a personal residence, not an investment. 

While that is the process, if it were a rental, you submit your bid to the realtor and wait to hear back. You need patience in this game, you don't get every property you want, life doesn't work that way. If you get the property you win, if someone out bids you, they probably paid to much and it's not a sound investment according to your criteria, so you walk away. As for those who pay $30k over market, you'll probably get the place in a year or two when they've lost their shirt.

There is no place for emotions in the business of real estate, a personal residence is all about emotion. I wouldn't recommend buying a foreclosure as your first choice for a residence there are to many risks.


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## kewlthing (Jan 30, 2010)

Spider Pig said:


> I recently tried to buy a foreclose in Surrey. The hole process in BC is a pain. I will lay it out for you:
> 
> 1. Find a listing you really like on MLS.
> 2. Have your realtor inform you it's a foreclose and not to get your hopes up. :/
> ...


Great story and great explanation. Your story mirrors mine. I'm sure money can be made and I'm sure there are deals out there somewhere but I didn't find them. In fact my experience with all this has really soured me on the whole process. Some people who do this type of thing a lot may be getting some deals but I suspect some people are living a delusional lie when they get these properties and truthfully crunch the numbers.


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## Berubeland (Sep 6, 2009)

kewlthing said:


> Great story and great explanation. Your story mirrors mine. I'm sure money can be made and I'm sure there are deals out there somewhere but I didn't find them. In fact my experience with all this has really soured me on the whole process. Some people who do this type of thing a lot may be getting some deals but I suspect some people are living a delusional lie when they get these properties and truthfully crunch the numbers.


I think most of these ideas are really good for selling real estate get rich quick courses. Frankly even if all the stars aligned and you got one of those deals, it's not a scale-able business.


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## mixgreens (Feb 25, 2016)

I think the best place for foreclosures properties to buy is in Grande Prairie, Alberta. I found 19 foreclosure properties, pm me if you want, I send you a list.


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