If you’re interested in foreclosed houses for sale and are doing research about the foreclosure process and foreclosure availability, it’s imperative that you research using Canadian websites. Both the US and Canada have resources about foreclosed houses for sale and the available information will differ. Foreclosures in the US are very different from those in Canada, including the laws around foreclosed houses for sale as well as the availability of foreclosed property. If you’re interested in purchasing a foreclosure in Canada, speak to a Realtor® for clarification so as to properly understand the foreclosure market in your own city.
US Foreclosures Alter The Perception Of Foreclosed Houses For Sale
Canadian Foreclosures
In both Canada and the US, a foreclosure occurs when a person misses payments on their home. In general, in Canada, a foreclosure is proposed if a person misses their payment 4 times. But if the homeowner can negotiate with their lender and show that they are capable of repaying the home loan, they may keep their house. If they can’t, the home is foreclosed and repossessed by the bank. Canada tends to have more lenders than the US who offer reasonable payment plans that work well for homeowners, which makes foreclosures in Canada rarer than they are in the US. Homes in Alberta also tend to be more affordable than homes in BC and Ontario and people are more likely to be able to make all of their payments, although there may be an increase in foreclosures as interest rates continue to rise across Canada.
The Foreclosure Crisis In The US During The Recession
Between 2007 and 2010, the US faced mass foreclosures as homes across America became repossessed during the Great Recession. Before this period, there was a boom in home buying caused by low interest rates and the extension of credit for home mortgages. During this time, many subprime mortgages were given to people and low-income earners were given loans that lenders deemed risky. As credit conditions slowed in 2006 and tighter credit conditions limited lenders from continuing with risky loans, people with flexible mortgages no longer had affordable mortgages and they couldn’t make payments. The rate of foreclosures began to spike and one of the major financial service firms (Lehman Brothers) declared bankruptcy. At the height of the US foreclosure crisis, approximately 120,000 homes were repossessed in a single month. The foreclosure crisis still shapes many people’s understanding of foreclosures and creates a skewed perception that foreclosures are very common and always a good deal. It’s important to know that not only did this crisis occur many years ago, but also that Canada never had the same type of crisis. During the US foreclosure crisis, Canada’s real estate market had more security measures in place that saved us from the severe crash of the US housing market. Although foreclosure rates still rose during the recession, they were nowhere close to the foreclosure rates of the US.
How Does This Influence Foreclosure Homes For Sale Today?
The sudden explosion in foreclosures in the US during the recession has skewed many people’s views on foreclosures and to this day many people don’t have a solid understanding of how uncommon foreclosures are in Canada versus the US. In general, it’s not very common to find an abundance of foreclosed houses in Canadian cities outside of Vancouver and Toronto even though you may hear of common foreclosures in the US. A part of the pervading idea that foreclosures are common is due to how many Canadians watch American TV, including home improvement shows that tend to have a lot of flipped and sold foreclosures.
How Do I Find Foreclosed Houses For Sale?
If you are hoping to buy a foreclosure in Canada, especially one that is well-priced, it’s best to partner with a Realtor® who is highly experienced in the foreclosure market. They will be able to direct you to the proper resources and help you find foreclosed houses for sale that are a good value. Without a Realtor®, it is significantly harder to find foreclosed houses in Canada in 2022 than people think.
How To Find Foreclosed Houses For Sale In Calgary
Although Canadian foreclosures aren’t as common as American foreclosures, they are still a viable option for home buyers. To find a foreclosed home for sale in Calgary, a person needs to know where to look and needs to be savvy about what exactly they are looking for. By partnering with a Calgary Realtor® who is knowledgeable and experienced with the foreclosure real estate market, you can find foreclosed homes for sale and ensure that you get a good deal. The Mel Star team of Calgary Realtors® has helped with the sale and purchase of thousands of foreclosures. Our team of expert Realtors® can help you find a foreclosure that meets your goals and we can expertly navigate the foreclosure contract. To find your next home, contact the Mel Star team at 1-403-861-9944 or fill out the contact form.
FAQ
A pre-foreclosure home has not yet been foreclosed, but it is going to be. If you are purchasing a pre-foreclosure home, you will be buying it from the homeowner instead of from the bank. These properties can often be very affordable, as the seller has a short time frame to sell the house. Ask one of our Calgary Realtors® about the different options of bank foreclosures versus pre-foreclosure homes for more information and the pros and cons of each.
When it comes to buying a foreclosure, there is no special training for Realtors®. Because of this, it is extremely important to have a Realtor® with extensive experience and the knowledge to increase your chances of obtaining a great deal as well as looking after your best interests.
No, the bank will not pay for any inspection. Inspecting the foreclosed property must be organized and paid for by you. This is an expense you must take on as a potential buyer to ensure the property you are interested in does not have significant unexpected damages.
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