Posted on: 03-01-08 13:51:50
Hello,
During my house search, I have come across a house in Brampton which is up for sale by the bank, due to non-payment by the previous owner.
Is it a good idea to buy a resale house from the bank? What are the advantages/disadvantages? Any hidden costs, or anything specific that I should look out for, if I go for the deal?
Any CD's who has experience in buying a resale house?
Cheers
I am sure some of the realtors here will give a detailed sketch, but for my two cents, I will keep away from such resales. Main concern - the previous owner could come and create issues later. If you know the previous owner and know that he/she is okay and decent, then may be... else, there is some risk.
Bank sale is OK in Canada.It is legal and with due process. Once you get title previous owner can not do anything.
Only a small problem with Bank sale
1. You cant put any conditions on your offer !
2. Since owner was going bankrupt ( running out of money ) he should have stopped maintaining the house long time back ..
3. Appliances belongs to the owner ,,,he can show up at the last minute for appliances ..
4. To get the hold of house legally bank generally spend money on all legal process . They wanna recover this amount if possible ..hence power of sale houses are not ALWAYS best buys ..
But yes if you are getting MUCH cheaper than market value than accept it as a boxing day offer ...
Ashwani
Wish you all the best in your search
-----------------------------------------------------------------
Growing Old Is Mandatory ..Growing UP is Optional
Power of Sale:
Please note that before pricing POS property banks normally approach at least 2-3 appraisers. Mortgagee (financial institution) then adds up their margin for negotiation etc. (can be 5-10% or more) to the appraised price and put the property for sale.
Thus, one is not always getting a great deal with POS properties.
When you buy a power of sale property, you are buying it "as is", with no warranites with respect to state of repair of the premises, inclusions of chattels or fixtures, or ownership of fixtures or appliances.
Sometimes disgruntled mortgagors purposely harm the property.
The mortgagor (original owner) has right to redeem the property up to the time of waiver or expiration of all rights of termination or fulfilment of all conditions. Putting buyers in the awkward position as their agreement of sale can become null and void. Buyers deposit is refunded without deductions in the above scenario.
One should seek legal advise when approaching POS properties, work closely with professionals who represent buyers and not the mortgagee/bank.
Regards,
-----------------------------------------------------------------
Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Hi Amit,
Any ideas as to how to cover oneself, especially if one is a first time buyer, when buying a resale house?
Can I draw up an agreement to cover myself (offcourse after consultation with the bank that's selling), just in case to avoid the situation of the last owner popping in at the last moment and creating a chaos.........
Quote:
Originally posted by amit kalia
Power of Sale:
Please note that before pricing POS property banks normally approach at least 2-3 appraisers. Mortgagee (financial institution) then adds up their margin for negotiation etc. (can be 5-10% or more) to the appraised price and put the property for sale.
Thus, one is not always getting a great deal with POS properties.
When you buy a power of sale property, you are buying it "as is", with no warranites with respect to state of repair of the premises, inclusions of chattels or fixtures, or ownership of fixtures or appliances.
Sometimes disgruntled mortgagors purposely harm the property.
The mortgagor (original owner) has right to redeem the property up to the time of waiver or expiration of all rights of termination or fulfilment of all conditions. Putting buyers in the awkward position as their agreement of sale can become null and void. Buyers deposit is refunded without deductions in the above scenario.
One should seek legal advise when approaching POS properties, work closely with professionals who represent buyers and not the mortgagee/bank.
Regards,
Tin Tin !
As a buyer you MUST hire a GOOD real estate agent ...
You dont have to pay any commissions and all legal matters will be looked after .
Wish you all the best
Ashwani
-----------------------------------------------------------------
Growing Old Is Mandatory ..Growing UP is Optional
