How To Buy Foreclosed Homes And Walk Home From The Bank Laughing!

Hopefully if you want to know how to buy foreclosed homes you already understand the benefits of taking such an action.

In case you didn't, some reasons you might want to know how to buy foreclosed homes is:

• You are much more likely to get your home at a fair market value.
• The Foreclosure auctions usually disclose the closing date (Less guesswork).
• Information on property is often more comprehensive.

So how does a home become foreclosed?

How Does A House Become Foreclosed?

The first thing that happens in the foreclosure of the house, is the lender (Often your mortgage provider) sends a demand letter to the borrower (Homeowner) saying that they must pay off their mortgage in a short period of time.

At this point a petition gets filed with the Provincial Supreme court, which starts a process called the "Order Nisi".

Basically, this gives the borrower (Homeowner) some time to get together the cash needed to pay off the mortgage. This time is called a "Redemption Time", which is often 6 months.

After the Redemption Time exprires though, 2 things can happen:

1. The lender will choose to have the property listed for sale by the court (Judicial Sale). The money made on this sale will go towards paying back the debt owed.
2. An absolute foreclosure will happen. This means that the lender takes control of your house, and this takes care of all your debt.

An absolute foreclosure only happens if you are unable to pay back the deficit (The house didn't make as much money as you owed, and you have no money to pay the difference), or if no one purchases the house during the judicial sale.

How To Buy Foreclosed Homes...

Here is the process of how to buy foreclosed homes:

1. The Buyer (YOU!) makes an offer to purchase the foreclosed property.
2. The Offer goes to court and is presented to the judge (Or the "Master in Foreclosure Proceedings)
3. The Master will ask if anyone in the court would like to make an offer on the home.
4. If no one makes a better offer, the master will approve the sale (If it is of market value). If there are other offers, all bidders will be asked to leave and resubmit their offers.
5. The Master will then look at each offer and approve the best one.

A very important note is that all offers made on foreclosed homes must be subject-free offers.

What is a subject free offer?

A subject free offer is the offer that a buyer creates. And if the seller accepts your offer, you must complete the purchase.

So why is this important?

Well what if you find out later that there are problems with your property? What if you can't get the mortgage that you need?

Too bad. You have to complete it no matter what. That is why it is very important to understand the subject-free offer.

How Do You Protect Yourself In The Case Of A Subject Free Offer?

There are a few things that you need to keep in mind to prevent yourself from making a mistake when making a subject free offer:

1. The #1 rule is to NEVER submit a Subject-Free Offer when you are in doubt.
2. Always remember to hire a Professional Realtor when making this important offer. You can't back out, so you can't afford to make a mistake. A Qualified Realtor will give you advice and guide you through your offer so you stay protected.
3. Get a letter from a lender qualifying you for financing.
4. Get a building inspection done before you make the offer.
5. Go through all the property documentation with a lawyer and Realtor to make sure everything makes sense to you.

Following these tips will minimize your chances of making a bad investment.

Let Me Guide You Through Your Purchase

Of course, you still want to make a smart, well-informed decision. But you also want it done quickly.

A difficult task; but it doesn’t have to be!

If you hire me as your Real Estate Agent, I promise to help you find the home of your dreams while making an informed buying decision.

Learn more about why you should hire me as your Real Estate Agent.

My Promise To You I will always give my professional opinion, and help you make the most informed buying decision possible. I will return your calls and emails, and will always show up for appointments. I won't push you into something that you are not 100% comfortable and confident in. I will work diligently to help you sell, or buy your house at the absolute best deal possible. I am a Professional Real Estate Agent and you will receive my undivided attention. Cam Vanklei (604) 795-2955 Chilliwack BC, Canada HomeLife Glenayre Realty Ltd.

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