Don’t forget closing costs when buying a home Legal fees: In Ontario you are going to need to hire a lawyer to complete the sale of your home. Talk to your lawyer, or potential lawyers for their fees. Also make sure you are clear on what their fee will be, and also what other charges…Details
It is rare to find a buyer that wouldn’t like to get a great deal. When buyers start the home shopping search they will often look for a “deal”. With all of the TV shows on flipping and buying and selling real estate many people will look for distress sales and get some ideas that don’t always work in different areas.
Foreclosures can be a great deal. With a foreclosure the bank or lender has taken over possession of the home and all rights to the home and any equity has been stripped away by the courts most often for failure of payment. With a foreclosure these can be great deals as the bank or lender will often want to get out of the home what ever they have invested as quick as possible to minimize there losses. The problem with foreclosures is it is a court ordered process that takes a long time and thus it will be very difficult to find one under this process.
In Canada we have an alternative process, that is much more timely and less costly, and that is a Power of Sale (POS). With a Power of Sale property the lender has still taken over the property and although these properties look on the surface like a great deal, the lender has certain guidelines that they must follow given that the sale is not by court order. The Power of Sale leaves a right of redemption for both parties. Which means that if there is excess money from the sale an owner’s equity can still be preserved. However if the sale has a short fall, the owner could still be held liable. For a Power of Sale, due to the right of redemption, lenders need to attempt to protect the value of the property as it could be litigated that they acted in careless disregard. Still, these properties need to be sold and if you are patient they can sometimes be good deals. The best deals in a power of sale situations are fixer uppers as they usually require work to fix them, most buyers today do not want the extra work as buying homes that are already in excellent condition don’t cost that much more on a monthly basis due to the low interest rates.
Ultimately people want to know that they were treated fairly and paid a reasonable price. It is best to understand the in’s and out’s of each type of purchase and calling a real estate professional will help you through this. You can contact the Price Real Estate Team at 519.663.9411 or Info@PriceRealEstateTeam.com