POWER OF SALE & FORECLOSURES
Most bank sale homes in Ontario are sold by Power of sale and are rarely sold by foreclosure. Although foreclosure is possible it is a longer legal process and usually not used by the banks. Power of Sale properties often present a great opportunity to get a deal on a home. These deals also can come with more risk as they are sold “as is” and require more due diligence by the buyer. However, it’s not so simple to find these sales, and they will sometimes sell fairly quickly. To remedy this, serious buyers should get an experienced Real Estate Agent
Looking for bank sales? Call Mike McMahon or fill in the form below with your email address and any specifications that may apply.
In the case of a Power of Sale, a notice initiates the process. The Power of Sale can take effect after 15 days of being in default, so long as 35 days notice has been given. Most Banks will issue a warning, in writing, that a payment is late. After approximately three months, banks will proceed through their lawyers and have the property sold.
When the due diligence for the property has been done, and the cost for the property has been determined, you, the potential buyer, are able to make a bid for the property.
Deciding on a suitable offer depends on different factors. Selling price can depend on, timing, history of the property, conditions, pricing and market time and all other offers in play will affect the sale price. This can make an experienced agent your best asset.
Remember that banks may not always take the first offer that comes to them and usually don’t. This is a business proposition and negotiating the offer is a matter of satisfying the bank's bottom line and expectations of liquidation pricing This process is similar to your average residential purchase, with the exception of timing, for the paperwork needs to be responded to from the lawyers (business days), and for emotion. There are many emotions a person may be feeling at the time of selling their home that will affect their ability to accept a reasonable price for the sale of their home, these feelings usually do not come into play in selling a Power of Sale.
Those that have pre-approved rating from the lender and have a good credit standing can get the power of sale properties faster than those who don’t. So it is very advantageous for those that are looking at these properties to have their financing in order. As I mentioned above,
I am always available to help you through this or any other real estate transaction. If you would like me to send you listings, Power or Sale or otherwise, please fill out the form below with your e-mail address and any other specifications that may apply!
Or you can contact me Remember, an experienced agent is your first great move!
Mike McMahon 905 240 4000