What is the difference between foreclosure and power of sale?

Foreclosure is a legal process where the lender takes full ownership of the property, while power of sale allows the lender to sell the property to recover the debt while returning any surplus to the homeowner.

How long do I have to catch up on missed payments?

The redemption period varies by province, typically ranging from 35 days to 6 months. During this time, you can pay the outstanding amount to stop the foreclosure process.

Can I sell my house during the foreclosure process?

Yes, in most cases you can sell your home during the foreclosure process, as long as the sale price covers the outstanding mortgage balance and any associated fees.

Buying Foreclosures in Canada: Working with Experts

Why Work with a Foreclosure Expert?

Foreclosure purchases are complex transactions that differ significantly from traditional home purchases. Working with an experienced foreclosure specialist is crucial for:

• Understanding the unique risks and opportunities
• Navigating complex legal processes
• Properly evaluating property condition and value
• Managing timing and deadlines effectively
• Protecting your interests throughout the transaction

Types of Foreclosure Sales

Bank-Owned Properties

✓ Conditions usually allowed
✓ Everything sold as-is
✓ Quick offer review process
✓ Offers reviewed by bank representative
✓ Typically one offer review date

Judicial Sales

• Conditions typically not allowed
• Everything sold as-is
• Longer review process with court dates
• Multiple offer review dates possible
• May involve closed bid process

Who Should Consider Buying Foreclosures?

Ideal Buyers

✓
Experienced Buyers
Understanding of real estate transactions
✓
High Risk Tolerance
Comfortable with uncertainty and challenges
✓
Strong Financing
Cash buyers or +20% down payment
✓
Property Investors
Looking for renovation opportunities

Should Avoid

✗
First-Time Home Buyers
Limited experience with real estate
✗
Risk-Averse Buyers
Need predictability and certainty
✗
Limited Down Payment
Less than 20% if financing required

Common Challenges and Risks

Property Condition Issues

• Unfinished renovations due to funding issues
• Hidden damage (e.g., rodent infestations)
• Missing appliances and fixtures
• Odors and environmental concerns
• Risk of damage before possession

Judicial Sale Process Example

1. Submit initial offer
2. Court date set (typically 2 weeks out)
3. All offers disclosed to all buyers
4. Possible multiple rounds of bidding
5. Potential closed bid process
6. Final court approval required

Note: Properties may sell for above asking price. Example: Clients started 40K under, ended 15K over asking.

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