Home foreclosures skyrocket in Kelowna

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Home foreclosures are on the rise in B.C.’s Central Okanagan in recent months, but local real estate agents disagree about who might be losing their homes.

There are more than 170 court-ordered sale properties on the market in the Central Okanagan, more than 10 times more than three years ago.

Real estate agent Jason Neumann says according to his estimates, in the last 30 days alone 60 new foreclosures were put on the market, and he calls it a disturbing trend.

Foreclosure are up in the Central Okanagan according to local real estate agents. (Reed Saxon/AP Photo)

Neumann is worried the number of foreclosures will bring the overall market down, hurting anyone who wants to sell their home.

“What do you tell your sellers that are not in foreclosure that are now up against something they didn’t see coming? It’s one of those things where the bank is going to have to do what it’s got to do to get it sold.”

Neumann thinks many working class families are losing their homes, but not all real estate agents agree.

Elton Ash, the vice-president of Remax Realty in Western Canada, says most of the foreclosed properties are from people who were trying to flip homes during the hot market a few years back.

“People weren’t able to achieve their goals in doing this and so they quit making payments,” he said.

The number of MLS listings in the Central Okanagan for foreclosed homes has been rising in recent years, according to these estimates provided by local real estate agent Kent Jorgenson. (CBC)

“The market in the Okanagan has really come to a standstill on that speculative investment front, and that is really what has been a major portion of the court-ordered sale thing that has increased so dramatically.”

Ash says many Canadians are now buying vacation homes in the U.S., where prices are currently low, but he predicts prices will eventually rise in the U.S., and investment home buyers will again look to Kelowna.

For More Info: http://www.cbc.ca/news/canada/british-columbia/story/2012/02/15/bc-okanagan-home-foreclosures.html

CMHC Foreclosures Rule Change Raises Suspicions About Mortgage Insurer’s Motives

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Canada’s government-run mortgage insurer is playing down suspicions it’s trying to keep information from the public about foreclosed homes it’s selling.

Questions were raised Tuesday after a document from the Quebec Federation of Real Estate Boards, circulated on Twitter, stated the CMHC had instituted a new policy asking real estate brokers across the country to stop indicating whether a property being sold by the agency had been repossessed.

For Quebec’s real estate brokers, that presented a challenge because the repossession field in their brokerloading system, used to list properties publicly, was mandatory.

So brokers had no choice but to indicate “no” in the repossession field, “which goes against ethical rules stipulating that real estate brokers are obliged to publish information that is truthful and verified,” the document stated.

Quebec’s real estate boards solved the problem by making the repossession field optional in their brokerloading systems, but “the issue raises a larger concern about why CMHC is acting now to tighten up its practices for foreclosures,” the National Post reported.

Canada’s housing market has been under downward pressure recently, and housing downturns often coincide with increases in property foreclosures if they are a result of economic weakening. Rising foreclosure rates can also put downward pressure on house prices. However, there has been no indication so far that foreclosures are on the rise in Canada.

The CMHC says there is no conspiracy to keep facts about home foreclosures in Canada a secret. In a response to the Post’s story, CMHC Vice-President Mark McInnis suggested the agency was just trying to get better prices for the properties it sells.

For more info: http://www.huffingtonpost.ca/2013/02/27/cmhc-foreclosures-rule-change_n_2776256.html

3 Crucial Tips You Should know About Buying Canadian Foreclosures

Three crucial tips you should know about buying canadian foreclosures

There are a few things to think about when looking at foreclosure listings in Canada. Each of these items is a very important part of the process of purchasing and getting a good deal on a foreclosed property. Not every property is the same, and you must ensure that you are going into a sale with all the information you can get.

The first thing every buyer should check on is the state of the property. In some cases, a perfectly nice family or person owned the home and was simply unable to make the payments. If that is the case, these perfectly nice people probably left the home in good condition. However, other people who may be angry at the bank or just not very tidy could have destroyed the house and caused damage that is nearly irreparable. The only way to know this for sure is to have a home inspection done. Some brokers may not pay for an inspection on a foreclosure sale, but it is in your best interests to get this done.

Next, you want to check on the price of the property. Just because it is foreclosed, that does not mean that the price is final. You should ask to negotiate the price on the foreclosed property just like you would on any other property. Make a fair offer in writing and see what the bank says in return. They are trying to get something for the property, so you don’t know until you ask.

The last thing to consider is whether or not you might want to renovate the property. If this is the case, and you have had an inspection done, you may want to consider getting plans together for a renovation. When you go in to purchase the foreclosure, you could present the plans for a renovation and perhaps obtain a loan for construction purposes.

When you are looking at foreclosure listings in Canada, you want to make sure you know the state of the properties, negotiate a fair price, and think about what it will take to do a renovation if you are so inclined. Following the above steps will help you buy a foreclosure that works for you and your family.

British Columbia’s Foreclosure Process

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Foreclosure Listings Canada

Foreclosure is generally a magical word on the investment market, but buying a foreclosed home in British Columbia is not like purchasing a home that is simply listed for sale. There are extra steps and hoops that a buyer must be aware of before selling the property.

Before a property can enter into foreclosure, the original owners must be at least three months behind on their payments. When that happens the lender will send a letter of demand to the borrower, which gives the borrower a small window of time to pay off the mortgage, then a petition is filled with the Supreme Court. The court then issues an Order of Nisi, which gives the borrower up to 6 months to pay off the mortgage; generally through a short sale.

If the borrower cannot pay off the mortgage, then the lender receives permission to list and sell the property where the borrower is responsible for any difference between what is owed on the property and what the property sells for. This is called a Judicial Sale. In some circumstances the court can opt to give the lender an absolute foreclosure, which only happens if the property is worth the same or more than the mortgage, the borrowers have no assets in which to cover the difference between what is owed and a sale, and/or there are no offers within a set amount of time under a judicial sale. After an absolute foreclosure has been granted the lender cannot take further action against the borrower.

Once the court has released a judgment, the property can be listed and placed on the market. A buyer can make a bid at this point. Once the bid is placed, the purchaser must remove conditions such as home inspection, title search, etc. on the sale, and then the offer goes before the courts where the judge opens the bid to the courtroom floor. If there is only one bid on the property and the bid is fair market value, then it is considered sold. If others claim a bid on the property, then the judge requests a seal bid from each party who desires to purchase the property. The judge opens each bid and if they are fair market value the highest bidder gets the property. So even if the bank or other lender approves of your bid, it is not considered binding until the court approves it.

Build Your Network as a Real Estate Investor

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Any business owner can tell you that building a network is one of the most important tasks you can do. Your network is there to support you, and in a lot of cases will bring you business and leads. But for your network to work for you, you need to nurture it and grow it carefully.

The first step to networking is to have business cards on you at all times and pass them out like they are candy. Your business card is like your handshake, it says so much about you and what you do. Granted a vast majority of people will throw out your card and not think of you again, but there will be a handful that will remember you and hold on to your card. Those people are part of your network. They are the people who will send you tenants and other support people for your network.

Make sure that you are cultivating your contacts. For example, you have a building that has 10 units in it and you have finally found someone who does great repairs at a reasonable cost. Instead of squirreling that information away, pass it on to some of your most respected colleagues. The handy-person will appreciate the extra work and cash while your colleagues will love saving a few extra dollars.

Harness the power of technology to build your business. There are only so many hours in each day and the most successful people in the world know that using technology to help you complete tasks opens up more time for growth, and you spend less time on maintenance. This is the smart way to work, since growth generally means more income and a step closer to your dreams and maintenance means staying the same.

Using tools like autoresponders to educate prospects, a Squeeze page online to find new leads, and a web page to attract interest in your business opportunity. To keep tenants on track, use an automated billing and receipt service. For those tedious tasks, like returning phone calls, get a secretary or answering service. This way others are handling boring calls and you are handling only those that are actually important and no one else can deal with.

Where to find Foreclosure Listings in Canada

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Sometimes the hardest part about finding a deal on a foreclosed home is knowing where to find the listings to be able to sift through them and find that diamond in midst of all that coal. That is not an easy task, and will take a lot of research, unless you are willing to pay for those listings.

Probably the best place to start is to find a realtor that specializes in pre-foreclosure and foreclosed homes. This person will become your best friend and teach you the ins and outs of finding those hidden gems on the foreclosure market before others do. When using a realtor, you free up much of your time for other activities, but you are also going to pay the realtor a percentage of every sale to cover their time showing you homes.

Another route to go is to hit government websites and search for listings. These are generally listings for items going up for auction and have not hit the open market yet. Going to an auction can be interesting and fun, but before you go you should know the rules and what is required of you if you decide to make a bid. For general information, http://www.bankofcanada.ca/en/markets/markets_auct.html offers PDFs of the rules and requirements of various public auction types. For more specific information check with your lawyer or on local government sites.

The last option is to buy a list off of a foreclosure site. Shop around for the best deal since what these sites charge can vary widely from seller to seller. When researching this article, sites were found that charge as little as a dollar or as much as $50 or $60 for a monthly subscription to foreclosure listings delivered on a regular basis to your inbox. This is probably the best option since you are not paying high fees for a realtor nor are you wasting time running around.

If you are extremely determined to find foreclosures on your own, you can go to individual banks and request copies of their foreclosed properties and sift through them on your own. The good news is that this method is generally free. The bad news is that this method is time consuming and frustrating. Many times you cannot see the property and have no idea of its condition. If you do find a property you want, there are times where it is either already sold or unavailable for other reasons.

Finding The Right Investment Loan

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When purchasing an investment property, it may be necessary to borrow money to complete the transaction. But before you head off to the bank, there are a few things you should know.

Just like any other major purchase, shop around for your best deal. That means checking on interest rates, points, and customer service scores of the various banks. Weighing them to fit what you need will matter. Such as high interest rates eat into your profits, so you are going to want to look for the lowest rate possible. If you find yourself in the position of choosing between two locations with the same interest rate, check into amenities like customer service. Good customer service for the same price is a wonderful benefit, especially if there is a problem later down the road.

Once you find a few banks you would like to approach, you are going to need to set up an appointment and bring a plan with you to show that you have seriously thought about what making an investment really means. The bank essentially becomes your business partner, so they are going to want to know a few things about you and the property to decide if you are a good gamble or not. Banks need to know: what are you borrowing money for, how much do you have down and how much are you borrowing, what your credit score is, how you plan to repay the loan, how long you need the loan for, if you have assets to use as collateral, and how you plan on making a return on the investment. While this is not as detailed as a full business plan, the more details you provide the more favorably the bank will look at your application.

Finally, before taking out the loan, you are going to need to know the tax laws for your area. Sometimes the interest on your loan is tax deductable, sometimes not. There are areas where the payments on an investment property are tax deductable and other times where they are not. Of course be sure to know exactly what local, state, or other property taxes may be involved in holding investment properties. Since being able to pay the taxes may impact how quickly the loan can be repaid.

Foreclosure Process in Saskatchewan

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Saskatchewan is one of the Prairie Providences, and its laws are similar to those surround it, with one exception. Foreclosures must go before the Farmer and Farm Land Security Board (FLSB) before being heard in court. When making notifications, the lender must file a Notice of Intention to Foreclose with the FLSB before filing with the court system. This is only for mortgages with farmers, and not with the average home owner.

When the FLSB receives this notification, it reviews the farmer’s financial status and sends a report to Mediation Services. Mediation services then attempts to create a solution that is agreeable to the farmer and the lender, but if that fails, it must file a report with the court. From the first notification, this whole process must take place within 150 days.

If the lender and farmer come to an agreement, the process is halted, but if not the courts grant permission for the lender to pursue foreclosure according to law. To start, the lender files a Statement of Claim, where the conditions of the mortgage and the arrears are defined, and then the farmer has 20 days to file a Statement of Defense. If a Statement of Defense is filed, a court hearing decides the outcome, but if not the court grants an Order of Nisi.

Once the Order of Nisi is granted the lender can file for an Absolute Order of Foreclosure or a Judicial Sale. Then there is a 3 to 6 month waiting period, where the farmer can bring the mortgage back to good standing, which the court will define based on the individual circumstance of the mortgage and farmer’s financial status. If the Judicial Sale is granted, the court orders the property sold either through public auction or private contract. If the sale is approved by the court, then monies are distributed by law to settle the mortgage. If the Absolute Order of Foreclosure is issued, the property reverts to the lender’s possession and is then sold to cover as much of the debt as possible as long as the final sale is approved by the courts.

Investing in Foreclosures

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That being said, foreclosure sales are generally “buyer beware” sales. This is because many foreclosed homes have left broken hearts and angry tenants in their wake. Most people do not enter foreclosure voluntarily and will try to damage or strip the home of most of its value. This can be by removing fixtures from the home like cupboards, wiring, and lighting or it can be from spray painting, flooding, or other damaging behaviors.

Most of the time, a buyer cannot see a property before making a bid on it, so the interior condition of the home is a mystery. When buying a home sight unseen, whether or not it can be habitable immediately is not known. If it cannot be inhabited, the cost of bringing it up to the right conditions can be quite high; possibly even more than the house could possibly make in today’s market.

Even without the worry of the condition of the home and cost of renovations, there is the emotional side to buying a foreclosed property as well. When purchasing a foreclosure, you know that the previous occupants were forced out against their will. Some people can look at that situation and say it is only business, but others will look at that and feel bad about the situation or lie to themselves saying that they are helping the previous owners out. In reality, the only profit being made is by the bank, and usually the bank is selling at a loss as well.

So, while foreclosures look like an easy way to high profits, keep in mind that in some cases they are not. When looking for foreclosed properties, try to investigate them first and if at all possible, tour them. If not possible do your best to learn the condition before making a bid or signing any contracts to purchase.

A Guide to Investing in Foreclosures

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A Guide to Pre-Foreclosure Listings In Canada

Many homebuyers in Canada wonder pre-foreclosure properties are. Other homebuyers wonder how they can access pre-foreclosure listings. Here is a brief guide to pre-foreclosure listings in Canada that can help homebuyers successfully obtain and use pre-foreclosure listings. It includes information on what pre-foreclosure properties are and where to look for pre-foreclosure listings in Canada.

Hopefully, this guide will help homebuyers in Canada who are interested in pre-foreclosure listings find the answers that they need about three of the most common questions about pre-foreclosure listings.

What are pre-foreclosure properties?
A pre-foreclosure property is a piece of real estate that is owned by somebody who is in danger of being reposed by the lender because the owner has fallen too far behind on his payments. These properties are usually sold short at prices well-below market value. As a result, there is a high demand for pre-foreclosure listings in Canada because there is the potential to make very good profit margins off of these properties.

How can homebuyers in Canada find pre-foreclosure listings?
Canadian homebuyers have many methods to choose from to find pre-foreclosure listings. Most of these methods are easy to use and can quickly provide hundreds of quality pre-foreclosure listings. Here are three of the most common ways that homebuyers in Canada can find quality pre-foreclosure listings.

Look online.
There are many very good websites that feature hundreds (if not thousands!) of quality pre-foreclosure listings in Canada. These websites do a good job providing national as well as local leads on many quality pre-foreclosure listings that include single family homes, condominiums, multi-family housing and many more. The best thing about these websites is that they are easy to use and they allow users to quickly find good values on many pieces of real estate in their area. As a result, the Internet is the most popular media outlet to find pre-foreclosure listings in Canada.

Look for pre-foreclosure listings that are featured in your city’s local records.
Another good way to find pre-foreclosure listings in Canada is to look for pre-foreclosure listings that are featured in your city’s local records. Since these records are in the public domain, it’s easy to find out if a piece of real estate in your area is in the foreclosure process. The best part about searching these public records for pre-foreclosure listings is that it’s free to do.

Finally, look for pre-foreclosure listings that are featured in local newspapers.
There are many pre-foreclosure listings in Canada in local newspapers. This is the case because people filing for foreclosure relief in Canada are required by law to post sale notices in newspapers for their real estate. This makes the local newspaper a great way to find pre-foreclosure listings in Canada because it enables homebuyers to offer something for the home before it goes up for sale at auction. Since many home owners who too far behind on their payments are willing to do this, this method of finding pre-foreclosure listings in Canada is a great way to find pre-foreclosure listings without spending a lot of time or money.