Investment properties & foreclosures

[cdizzle_996]

School me on the process of purchasing a foreclosure.

I'm interested in buying a condo as an investment property. How does the foreclosure process work?

Say the price is listed at 110k, does it basically turn into a bidding war within the court?
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[Selanne_200]

Thought about this before as well, never went through with it, so would like to know answer as well. But then I would imagine it's more likely a case of offer by tender? since the bank would probably not want to sell it if they can only recoup lower than market price?

[Bonka]

Buying a foreclosure in BC is unlike what many assume to be an opportunity to buy a property at below market value. You're are correct in that the bank will try to sell for market value or more.

The process is essentially a multiple offer situation. The Buyer submits an offer with the necessary clauses (inspection, financing, mortgage, etc). Once the offer is accepted and condition clauses removed it is a firm deal but still subject to court approval. This is when the court date is set but this also allows other Buyers an opportunity up to the court date to submit their own offer. At this point the initial accepted offer price can be disclosed publically as well. Should there be other offers on court date the Buyer with the initial accepted offer would likely want to adjust their terms before the judge presiding makes the final decision.

Long story short, if you really want that particular property and you were the initial accepted offer be prepared to resubmit another one on court date as many Buyers like to submit their own just before they are presented to the judge.

FYI, especially pertaining to foreclosures, the faster you can close the better your chances.

[T4RAWR]

Where can you view foreclosure listings?

[Selanne_200]

you have to go down to the courts physically and usually there's supposed to be a schedule there