The Foreclosure Buying Process
When you're buying a Canadian foreclosure property it's important to remember that the process – while similar to that of buying regular real estate – can be different in several very important ways. Here we've provided you a basic step-by-step overview for the process of buying a foreclosure home or property.
The Foreclosure Mentors provide a Foreclosure Search tool that lets you create a customized Foreclosure Search based on location, price, number of bedrooms, and number of bathrooms to help you narrow your foreclosure property search.
You can easily opt-in to receive emails from our system immediately when new foreclosure properties that match your criteria are uploaded to the MLS® system.
Risk Tolerance Meeting
A meeting with a Foreclosure Mentor will help you – and us – understand what kind of a foreclosure buyer you are, and whether or not a foreclosure property is the right choice for you. We will help you understand your risk tolerance: are you a home buyer? A contractor looking to flip a property? An investor looking for a rental property?
It's important to view any and all foreclosure properties you're interested in, if at all possible. Foreclosure properties are sold "as is", and some need more work – maybe even a lot more work – than others.
Make sure you know what you're buying and what you're getting into!
Writing The Offer
Once you've found a foreclosure property you want to buy, the next step is to prepare an offer. Your Foreclosure Mentor will carefully and diligently write up an offer on our standard Alberta Real Estate Board approved paperwork.
Once you have submitted your offer, usually there is a period of negotiation between your representative as a buyer and a representative of the seller. Negotiations during a foreclosure purchase could include the current homeowner, lawyers, or the courts.
This process might also include multiple offers coming from other interested buyers. The Foreclosure Mentors have a comprehensive understanding of the foreclosure purchase process and are experienced negotiators.
When and if your offer is accepted, the deposit must be made out and delivered within 48 hours after acceptance. Some offers are accepted with conditions – this means there are requirements the seller has to fulfill before the purchase can be finalized. You can also make an offer without conditions, allowing the sale to be finalized immediately.
If your offer includes conditions, a date will be set by which all conditions must either be fulfilled or waived by you, the buyer. These conditions could include a review of condominium documents, a home inspection, or financing. By the condition date, all the conditions must be resolved or removed, otherwise the sale will not go through.
If the conditions are not resolved or removed, then the deposit goes back to the buyer and the deal is dead.
In any real estate purchase transaction, a real estate lawyer must be used. A meeting should be scheduled 1-2 weeks prior to closing to sign off all closing paperwork.
Once funds are received by the selling lawyer, this is the day they will legally release keys and possession will take place for the buyer. Your Foreclosure Mentor will meet you with keys and do a walk through on possession day.