| What is the difference between foreclosures or | | | | The bank/lender will now have the right to sell the |
| pre-foreclosures in BC? That’s what we get asked | | | | property. They will usually list it with a real estate |
| quite often. So let’s clarifying what is really being | | | | brokerage which will make it available on the public |
| asked here You want to know whether the properties | | | | MLS. |
| on the list are at the stage in the foreclosure process | | | | Once an offer is accepted, it is presented to the Judge |
| that is the most accessible to you and allows you to | | | | in court. |
| go in without having to compete with other bidders. | | | | >Court Auction |
| >Pre-Foreclosure | | | | If there are no bidders in court at that time, the sale will |
| Let’s explain it like this: let’s say Joe just got laid | | | | be completed. If there are other bidders present, it is |
| off yesterday, and he’s worried about how he will | | | | sold to the highest bidder even though there is an |
| make his mortgage payments. At this point, he is not in | | | | accepted offer from the buyer who came from a |
| default yet because he made his mortgage payment | | | | realtor. Therefore, the price may get bidded too high |
| last month. | | | | and the buyer must buy the property without any |
| But he is probably considering selling his property | | | | conditions (with cash). |
| because he doesn’t know if he can find another | | | | >The Best Time To Buy Foreclosures |
| job and continue to make mortgage payments. Most | | | | If you have a way of knowing about a pre-foreclosure |
| investors consider this a "pre-foreclosure" situation, | | | | situation, then by all means, offer a solution to the seller. |
| because the foreclosure process has not started yet. | | | | However, at this stage, the seller, like Joe in this case, |
| >Demand Letter / Petition | | | | may be just thinking about selling, but not that |
| 3 months pass by, Joe still doesn’t have a job, and | | | | motivated - yet. Also, they are not that accessible, you |
| he’s missed 3 months of mortgage payments. | | | | would most likely have to know the seller personally. |
| Now his bank/lender sends him a demand letter asking | | | | The foreclosures on listings sites such as |
| for full payment of his entire mortgage immediately. | | | | canadaforeclosurelist.ca are in the REDEMPTION |
| Joe can’t pay it, so the bank/lender begins a legal | | | | PERIODbefore they are foreclosed on and after they |
| process called a foreclosure in which the bank/lender | | | | miss their mortgage payments. This is the perfect time |
| will legally repossess his house. This is done by making | | | | for you to approach the sellers because they are |
| a Petition in Supreme Court. | | | | much more motivated to sell which gives you the |
| >Redemption Period | | | | chance to buy the property at a significantly reduced |
| At the Petition, the Judge will give Joea Redemption | | | | price. |
| Period, a set period of time to allow Joe to sell the | | | | And this is before it gets listed on the public MLS and |
| house or repay the mortgage by other means. The | | | | before it is auctioned at the courthouse, which protects |
| Redemption Period is usually 6 months. | | | | you from being out bidded by someone else – even |
| If Joe sells his house within this period, the foreclosure | | | | if only for $100 more. |
| process stops and he would have saved his house | | | | Also, you can buy the property normally with a |
| from being repossessed. If he can’t do that before | | | | mortgage and with conditions, unlike a court auction |
| the redemption period then this will then lead to | | | | which requires you to pay in cash. |
| >Court Ordered Sale | | | | |