BC foreclosure expert needed

SamPerren

Ask how YOU can profit from the boom in Kamloops!
REIN Member
Sep 8, 2010
25
3
8
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!
REIN Member
Sep 8, 2010
25
3
8
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!
REIN Member
Sep 8, 2010
25
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 !