Buying a Foreclosed Home in Calgary: What the Process Looks Like

Buying a home is one of the largest investments you’ll ever make - and perhaps it may be the best. If you’re looking at foreclosed homes for a great deal, here’s how our Calgary realtors can help you get the best value for your money.

If you’ve been renting homes for a while, you are most likely tired of the monthly expenses. So imagine having a home to call your own; your own private space, a garden for summer barbeques, and most importantly, no more rent cheques.

However, becoming a homeowner is a big decision, so before you take any steps, you want to make sure that it’s the right choice for you.


Some signs that you might be ready to become a homeowner include, you:

  • Have a good credit score
  • Have enough for the down payment
  • Are committed to the city in which you live
  • Have your debt under control
  • Are prepared for the maintenance that comes with home ownership


Our Calgary Real Estate Agents Can Help You Find Your Dream Home

Are you looking for your dream home at a great price? Then you may want to consider the foreclosure listings in Calgary. At Mel Star, our team of top Calgary real estate agents hedge the risk associated with buying a foreclosed home, providing you with the expertise and advice you need to get the best value when buying your first home.

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4 Steps to Buying a Foreclosed Home in Calgary: Top Tips From Our Calgary Realtors

Whatever your reasons for buying a home, buying a foreclosure can be a solid investment, but without the right knowledge, it can turn out to be an expensive mistake. Working with an experienced realtor is often the best way to make sure you get a great deal, but just to get you started, here’s what you can expect from the process:

1. Research

Before you buy a foreclosure, invest as much time as you can in researching your different options and browsing through foreclosure listings. There are bargains to be found, but it won’t be easy! Some of the things you should look at are:

  • Finding a list of foreclosures in your area
  • Checking for who owns the property (eg. lender or trustee)
  • What stage of foreclosure the house is in
  • Any back taxes or other liens that might be attached to the property

A real estate agent can help you with this research and speed up the process. Also, don’t forget that foreclosed homes are often behind in basic maintenance, which is something you should budget for.

2. Get the Financing

Decide how much you want to spend on the foreclosure. If you are using your savings, then determine how much you can afford to part with. NEVER invest money you can’t afford to lose. If you are going to use a mortgage, try to get pre-approved by your lender.

In addition to this, figure out all the expenses involved including:

  • Maximum deposit at auction
  • Closing costs
  • Downpayment
  • Insurance and taxes

6 TIPS FOR GETTING THE BEST DEAL WHEN BUYING A FORECLOSED HOME


3. Hire a Real Estate Agent

Buying a home is a serious financial decision, but buying a foreclosed home is an even more complicated process. Why? Foreclosed homes require more paperwork and a good understanding of the market and real estate law.

Hiring an experienced real estate agent will give you the leverage you require to avoid costly mistakes and make the right decision when it comes to purchasing your dream home.

4 BENEFITS OF WORKING WITH AN AGENT WHEN BUYING A FORECLOSED HOME


4. Make an Offer

This step will vary, depending on the stage of foreclosure the home is in.

  • If the property is in pre-foreclosure, the current owner of the house can still sell the property to pay off the loan.
  • If the foreclosure is set for a foreclosure auction, attend the auction and bid for the property. You will need to sign up for the auction on that day and bid for the property. Remember, decide what your maximum bid should be and stick to your decision.
  • If the owner is the bank, mortgage lender, or investor, contact the new owner and make an offer. Lenders are not usually in the business of buying and selling houses, so are generally happy to save time and money with a quick resale.

 

We Make Purchasing Your Dream Home Easy

At Mel Star, we have over 40 years of experience in Canada’s real estate industry, and we know first-hand the stress and uncertainty that can come with buying or selling a home. Our team of knowledgeable real estate agents hedge the risk associated with this process by providing an all-inclusive, one-stop-shop concierge service for your real estate needs.

Finding a home can be a complex and a frustrating experience, but our team of professional realtors are on hand to make the process as easy and simple as possible. To find out more, contact us at (403) 284-6333, fill in our contact form or visit us in person at 206-2411 4 St NW, Calgary, AB T2M 2Z8.

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We are here to help and we'd love to hear from you. Call us at 403-861-9944 and we will be in touch shortly!

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