Quick Facts About Foreclosures You Need to Know About

Are you looking to buy a foreclosed home in Calgary? Are you wondering what the difference is between a bank foreclosure and a judicial sale? At Mel Star, our team of Calgary realtors are in the best position to help you purchase your dream home at a great price, because we’ve sold hundreds of each type of home and have the experience you need to make this a smooth and easy process. 


The legal cause of a home foreclosure is simple: a homeowner falls behind on his mortgage payments, so the lender forecloses, taking the home as a penalty for non-payment.


There are several reasons why this may happen, including the fact that the homeowner may: 

  • Have excessive debts 
  • Be unemployed 
  • Have fallen ill and is unable to work 
  • Have recently become divorced and is unable to make the payments on a single income 
  • Have drained their financial resources 

Whatever the cause of a foreclosure, there are many benefits of purchasing such a home, including lower prices, faster sales, and better opportunities for negotiation. 


Our Calgary Realtors Are in The Best Position to Help You Find Your Dream Home 

Buying a home in today’s market can be a huge challenge. Luckily, our team of Calgary realtors have over 40 years of experience in the industry and we are in the best position to help you find your dream home at a great price! Whatever your needs, we go above and beyond your expectations and take care of all the small details, so you can focus on what matters most: investing in your family’s future. 

Want to know more? 

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What is a Judicial Sale? 

A foreclosure is the process of taking a mortgaged property when the homeowner fails to keep up with his/her mortgage payment. A judicial sale foreclosure refers to when the foreclosure goes through the court system and there is a court order for the property to be sold to pay the debt. 

A judicial sale typically happens when: 

  • The borrow cannot afford to keep up with the mortgage payments 
  • An independent appraisal has determined that there is equity left in the home 
  • The property debt cannot be resolved
  • The borrower is unable to pay the debts owed 

What Happens To the Proceeds From the Judicial Sale? 

Proceeds from the sale will first go towards paying off the original mortgage. After that, if there is a second mortgage, it will receive some proceeds. If there is anything leftover after satisfying any liens against the title, the borrower may sometimes receive the balance. 


Judicial vs Non-Judicial Foreclosures 

There are two main ways that a foreclosure can happen in Canada: A judicial and a non-judicial foreclosure. 

  • Foreclosure by judicial sale involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to fulfil the mortgage, then to any other lien holders, and finally the rest to the borrower/homeowner. Under this system, the lender initiates the foreclosure by filing a lawsuit against the borrower. 

  • Non-judicial foreclosures. This is the more common form of foreclosures in Canada and involves the sale of the property by the mortgage holder without court supervision. This process is typically much cheaper and faster than a judicial foreclosure and the order of payout is the same, with the lender getting the proceeds of the sale first. 

JUDICIAL VS NON-JUDICIAL FORECLOSURES 


Considering Buying a Judicial Sale Foreclosure? Quick Facts You Need to Know 

  • A court ordered sale means you get the home ‘as is.’ That’s why it’s so important to ALWAYS do an inspection before putting in your bid. 
  • If you get out-bid in court, you won’t get the home and you won’t be compensated for any loss of time or expenses, such as home inspections. 
  • The process of buying a judicial sale foreclosure is complex. That’s why it’s always best to work with a Calgary realtor who fully understands the process. They can ensure you get the best opportunity to purchase the home. 


We Make Finding Your Dream Home Easy 

At Mel Star, our team of Calgary real estate experts have sold thousands of foreclosed properties. We understand the difference between judicial and non-judicial sales and have negotiated through the different scenarios that can arise from court situations. 

Our experience will allow you to navigate this process successfully, thus ensuring a higher chance of obtaining your dream home. To find out more, contact us at (403) 284-6333 or fill in our contact form


 

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