BC foreclosure expert needed

SamPerren

Ask how YOU can profit from the boom in Kamloops!
Registered
Sep 8, 2010
27
3
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Kamloops
#1
Foreclosure expert in BC anyone? Ive fielded this question to my lawyer but would like another opinion.
I've got a potential new purchase, it's a preforclosure and the owner had not been served documents yet, only a few demand letters. Question: can I swoop in and purchase without the banks consent and purchase for less than mortgage balance? Seller is very cooperative
 

ThomasBeyer

Senior Forum Member
REIN Member
#2
You can always write offers, to anybody, at any time with any term in it. If an owner accepts it is of course another story !

Bank may be cooperative, or not.

You can also offer to buy $1 to mortgage, then make mortgage payments. Then rent out, and in time mortgage balance will drop to below value and you're in the clear.

or you can build a relationship with the bank's foreclosure department and buy directly from them. But for a bank to get the property they need a court order, and that takes 6+ months in Canada. Sometimes 9-12.
 

SamPerren

Ask how YOU can profit from the boom in Kamloops!
Registered
Sep 8, 2010
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Kamloops
#3
I should ad that seller already filed for bankruptcy and a trustee is involved.

I just sold a fixed up property similar to this for $399K.

This house has $270K owing, due to the state of disrepair it's currently worth $230K(my opinion, but I wouldn't pay more than $200K). Renos could exceed $100K if I go the legal suite route, a complete gut job, although drywall, plumbing and electrical systems may be salvaged.

I'm not sure there is a deal here unless the mortgage company takes a big haircut, but it will likely go to court where another investor may pay more....

I guess there is no harm in trying and seeing what the bank will do.
 

SamPerren

Ask how YOU can profit from the boom in Kamloops!
Registered
Sep 8, 2010
27
3
8
Kamloops
#4
You can always write offers, to anybody, at any time with any term in it. If an owner accepts it is of course another story !

Bank may be cooperative, or not.

You can also offer to buy $1 to mortgage, then make mortgage payments. Then rent out, and in time mortgage balance will drop to below value and you're in the clear.

or you can build a relationship with the bank's foreclosure department and buy directly from them. But for a bank to get the property they need a court order, and that takes 6+ months in Canada. Sometimes 9-12.
Thanks for your insight Thomas :). Where do you find the time to respond to every little post?
 

ThomasBeyer

Senior Forum Member
REIN Member
#5
I respond at will, in spare time to only some of them where I can add value.

In this $200,000 fixer-upper house I'd follow it in the court system, perhaps get a leg up by looking at it NOW, but court has to gavel down a decision first, and that might take 3-9 more months ..

Patience, young man, patience !