Do you know the difference between bank foreclosures and judicial sales? For that matter, do you have the right real estate agent? The Mel Star Team has sold hundreds of each type of home and our realtors can provide you all the advice you need to purchase your dream home.
There are many reasons why a home may go into foreclosure including excessive debt, expensive maintenance issues, or more, but whatever the reason, if you are looking to buy a home at a great price, there are many benefits of buying a home in foreclosure. This includes:
- Seller will be motivated to achieve a fast sale, offering opportunities for negotiation.
- Seller might be more amenable to provide certain concessions.
- You can typically use regular mortgage financing.
Our Calgary Real Estate Agents Help You Find Your Dream Home
Buying or selling a home in today’s market can be a huge challenge. Our team of Calgary realtors have over 40 years of experience and we are the # 1 real estate team in Calgary’s RE/MAX Central office, the world’s top-producing single RE/MAX office for 20 years straight. Whatever your needs, we will go above and beyond expectations and take care of all the details, so you can focus on what matters most: investing in your family’s future.
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Bank Foreclosure vs Judicial Sale: What’s the Difference?
If you are looking to buy a home, you may be wondering about foreclosure property. Before you begin the process, it’s important to understand the difference between a court-ordered sale (judicial sale) and foreclosure, and working with a professional real estate agent who has experience in these matters, is always the best choice.
To help you get started, here are the main differences between a bank foreclosure and a judicial sale.
What is a Judicial Sale?
A judicial sale involves the sale of a mortgaged property under the intervention of a court. It is typically ordered in instances of dispute where:
- The property debt cannot be resolved
- The borrower is insolvent
- The borrower cannot afford to continue their mortgage payments
- It has been determined by independant appraisal that there is equity left in the home
Proceeds from a judicial sale will first go towards satisfying the original mortgage. After that, second mortgages may receive some proceeds. If there is anything leftover after satisfying any liens against the title, the borrower may sometimes receive the balance of the proceeds as well.
Things to Remember When Purchasing a Court Ordered Sale
- If you get out-bid in court, you will be back at square one, and you won’t be compensated for time loss and costs such as home inspections.
- A court ordered sale is the home ‘AS IS’ and it’s very important to have an inspection done before putting in your bid.
- The process can be complex, so it's important to have an experienced Calgary realtor that understands the full process and all the different scenarios that may come up in court to enable the best opporturnity to purchase this type of home.
What is a Bank-Owned Foreclosure Sale?
A foreclosure is when a lender takes control of a property in order to secure monies owed. There are many reasons why a home would go into foreclosure, such as the homeowner:
- Got fired or quit their job
- Is unable to work due to medical conditions
- Has excessive debt or mounting bill obligations
- Got a job transfer to another province or city
4 Tips When Buying a Bank-Owned Foreclosed Home
- Find a real estate broker with the right experience
- Get a home inspection
- Get a preapproval letter from the lender
- Bid the higher price if homes are selling quickly, if you clearly see the value in the home
- Remember that the home is sold as is, so you shouldn’t expect compensation for repairs
The Mel Star Team
Our team of real estate experts have sold thousands of foreclosed properties, and understand the difference with bank-owned and judicial sales, and have negotiated successfully through many types of court situations that can arise, and how to navigtate through them successfully to ensure a higher chance of obtaining the home you desire.
The Mel Star Team adds long-term value to your real estate experience by providing:
- optimal value through cutting-edge, data-driven digital marketing strategies;
- decades of experience in the Calgary real estate market;
- expert advocacy and negotiation; and
- a concierge service that manages everything from staging to moving to transferring your utilities.
We’ll take care of the details so you can focus on what matters most - investing in your own financial future and making memories!
Find Your Dream Home Without Hassle
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 about our services, contact us at (403) 284-6333, fill in our contact form or visit in person at 206-2411 4 St NW, Calgary, AB T2M 2Z8.
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