Canada’s foreclosure properties for sale, especially in Vancouver, significantly increased at the start of the century. If you want to get the best deals out of foreclosures, you must understand the entire process. Ironically, the foreclosure properties for sale actually have three stages. The amount you will pay is highly affected on which the property currently is.
Vancouver Foreclosures Stage 1 – Pre-Foreclosure
When Vancouver foreclosures enter the pre-foreclosure stage, the previous homeowner can transfer the property for the final selling price even without the bank or lender’s involvement. It is much easier to get great deals in a property at a pre-foreclosure because the homeowner can avoid the foreclosure sale’s negative effects on his credit rating. However, you will need to deal with the bank if you want to buy the property for a price that is not enough for the default loan. The bank can choose to approve your offer or not. Their response may take four to six weeks because properties in pre-foreclosure are not a priority.
To increase your purchase’s success, make sure to check the loan in default. Check if it is within your budget. You should also check the property’s location and condition. These should tell you if the price is reasonable or not. Most sellers will be flexible in terms of the price as long as it will cover the loan in default. Haggle for a lower price if necessary, such as when there are things that need to be repaired.
To find Vancouver foreclosures in this stage, you can go to real estate agents, attorneys and accountants. Most properties in pre-foreclosure stage are not advertised so make sure to ask someone that works in real estate agencies, courthouse or bank.
Vancouver Foreclosures Stage 2 – Foreclosure
Most properties in foreclosure are advertised and are meant for auction. You will be lucky if no one else wants the property but this is unlikely because investors wait for foreclosure auctions all the time. Just like buying pre-foreclosure properties, you need to prepare your finances (e.g. check or a pre-approval letter from your lender). You can inquire about the necessary down payment in advance. You should also visit the property days before the auction.
There are listings for Vancouver Foreclosures online. Some are free while others are paid. The paid ones give you more options including the best ones. You can also check with your County’s Clerk to know the date of auction and Vancouver foreclosures for sale.
Vancouver Foreclosures Stage 3 – Post-Foreclosure
If the property you want is in post-foreclosure stage, you will most likely deal with the bank or lender. You can write a letter to the bank or lender stating your offer and expect a response in two to three days. The previous owner is usually out of this negotiation. Nonetheless, it is also easy to buy Vancouver foreclosures in this stage because the banks prefer to have the reclaimed properties sold as soon as possible. They hate excess inventory because it involves the need to keep the property well maintained. Banks can agree even for the lowest reasonable price.
Even if this is the easiest stage for buyers, you should never forget inspection, money and haggling.