ARTICLES

Power of Sale Properties

A ‘Power of Sale’ is when the present owners cannot continue to make the payments on their mortgage, and the bank takes control over the property with the intent to sell it on the open market to try to recoup any outstanding balance on the mortgage.

Contrary to foreclosure rules in the USA, Canadian finance companies are obligated to try to obtain current market value for the properties they have listed.

Regulations in Canada state that the previous owners are still entitled to any remaining equity in the property.

When you are considering a home that is listed as a power of sale you can expect to be patient – the process can take longer than with a normal resale home but the benefits may outweigh any minor tests of your patience.

These situations, however unfortunate for some, have created great buying opportunities for some (investors and contractors wanting to flip properties, etc.).

 Recent listings for Power of Sale properties have a starting value of around $38,000 in some areas of Windsor, and go up from there - all types and price ranges are currently on the market and if you are looking for an investment or a 4 bedroom raised ranch for the family there is a little bit of everything out there.

Please remember, that there are different risks involved with a power of sale than with most normal home purchases - banks generally attach their own schedule. Also, most lending institutions never actually see the property they are selling they take no legal responsibility for its condition. A home inspection is crucial.

While most are homes are in good condition you and your Realtor must take every precaution to protect your interests - being well informed and using a Realtor(s) with an indepth working knowledge of these types of properties (like us), is your best protection.

 

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