QUOTE (amiepardy @ Jan 30 2008, 10:09 AM) I personally know a few people who do very well buying foreclosures in Alberta. Again it depends on your knowledge of how to buy and analyze the property you are buying. It has to go through a similar filter as any other home that you are considering buying. I personally know people for whom this is their main focus and do very well at it. Although I have not bought a foreclosure I would not hesitate to do so, it all depends on where you want to focus your energy. You can buy well under market value. I suggest checking out a website that I found interesting.
www.foreclosurescanada.com Best wishes Amie Pardy
We have purchased foreclosures both off of the MLS (minor success due to the increase in rents and values) and prior to them making it all the way to a judicial sale and directly from the seller. The MLS properties very rarely work as they are at full price and you are buying as is, sometimes you cannot even get in to see them, so there is some bigger risk attached.
The properties that have not made it to judicial sale yet are a much better opportunity. You can save some people from getting a foreclosure on their name and create a win win circumstance where you get a property under value (and usually in dire need of renovations), or with very good terms. Quite often the seller needs money NOW and their mortgage caught up, this can create some great purchase options.
The down side is you have very little choice as to where the properties are so you have to be able to determine if it works for a rental or flip property fairly quickly and then be able to deal with either option. Most REIN members are buy and hold people, so the flip idea sounds attractive, but requires a lot of homework. Especially in the current market which isn`t so flip friendly.
By the time most people have access to the forclosures though they are already listed on the MLS, so it is to late.