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Power of Sale Homes
                                   Foreclosures / Bank Sales / Estate Sales / Distress Sales
 
                    

 What is "Power of Sale"

  • When a property owner gets a mortgage, he assumes the obligation to make payments as stipulated in the mortgage agreement. 
  • If  the borrowers defaults in making payment as per the agreement, the Mortgage Act, gives powers to the lender,  to sell  the property  in the open market to recover his monies.
  • Properties  for which  lender exercises such powers,  are called  “Power of Sale”  properties.

 

Eight Tips to Buy a Power of sale
1. Actively look for Power of Sales: There are several sites that give access to latest Power of Sale properties. Some will email you the list as and when a new listing appears. Getting access to Power of Sales is very fundamental to buying a power of sale home
2. Keep in touch with the Banks and Secondary lenders: Keep regular contact with the banks and other lending institutions. Find out who is responsible for mortgages in default and their internal procedure to sell such properties . See if you can get such a list of properties as when they become available.. You may or may not be able to buy a property directly from the bank but you will defintely know when these go on for sale.
3. Have trades people ready to get estimates: Sometimes, the best deals can be had on those properties that have been neglected and are in need of repairs and renovations. You should have access to expert trades to get estimate as to how much it will cost to put the property in good saleable condition. It will also help you to make a realistic offer, without overbidding and save you from unpleasant surprises.
 
4. If you like a property – make an offer. Once you have done your due diligence and the property meets your requirements, do not hesitate or delay in making an offer. After all, making an offer may get you the property, wishful thinking won’t..
5. Be ready to negotiate: It is very seldom that the first offer is accepted by the bank. Buying a property should be a business decision, you should be willing to improve your offer. Do not take a stand such as” I never improve my offer or improving an offer is against my principals”. Remember, you are negotiating a business transaction and not negotiating your principal,. It is not the time to impress others with your principals.
6. Check your credit rating and get preapproved: If there are competing offers the conditional offers may not stand the same chance as those that come without any conditions. You should never take unnecessary chances, however, knowing your credit rating, getting preapproval from the lender and knowing how much mortgage you will qualify will increase your chances of getting that “Power of Sale”
7. Buy what you know and what you understand: Buy within your comfort zone. If you feel comfortable in a certain price range and say residential properties , stick with that. You do not have to buy a commercial Power of Sale if you are going to loose sleep over it.
8. Get professional help: If you do not understand any thing in the process of buying, ask a professional who can guide you. Lawyers can simplify the legal jargon and a building inspector can take the worry out of buying a run down property. If you are hesitant because of the expense involved in getting such a professional help, shop around for the best value. In the long run, professional consultation, will save you money and keep you out of complications.
 

Please click Power of Sale Toronto Homes to go to our parent website for registration and immediate access to Power of sale homes. 

 

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