When buying your own home, there is a lot to consider. Price and location are just some factors. And when it comes to price, the state of the house dictates how much will it be sold in the market. If you’re just starting to gather some information you should consider Toronto foreclosures in your initial search.
Buying a Toronto foreclosure home is a little different than purchasing newly constructed homes. Foreclosed properties are sold through public auction, and are often an attractive choice for first time home buyers. Not to mention real estate investors prefer this kind of property because they can be purchased below the market value.
It is very important to become educated about the process of buying houses through foreclosure auction. In a foreclosure event, attendees must register at least one day prior to attending. As a buyer you must be prepared to submit full payment for house purchases within 24 hours of the auction closing.
You must understand that foreclosure is a legal process that is initiated whenever a homeowner defaults or stops making payments on their mortgage. When the foreclosure is completed the home is either sold at auction or becomes real property of the lender and is now owned by the lender REO, Real Estate Owned. Many of you have heard these terms from the news lately or see these types of homes in your communities.
There are also terms like the period called “Default” that you will encounter. It starts when the owner stops making payments. This can be a crucial time to find this property since the owner is quite troubled about the situation. At this point, there has been no action from the bank and nothing will most likely happen until later.
When a third missed payment comes in, most banks will send a “Notice of Default”. By this time the owner starts to worry, because the lien on the house has been “called in” and she only has 60 days to repair the situation or lose her home to the bank.
This is where investors or simply buyers, like you, can come in and get hold of the property. This is in reality a a good solution for the owner because even though he may sell his house for much lesser price than he could, he saves his credit history and maybe he even walks away with some money.
If you are looking to buy a foreclosure home for yourself, finding a deal can be a lucky move. You can find foreclosures almost anywhere in and around Toronto: Toronto, Mississauga, Durham, Milton/Oakville, Brampton, York, Orangeville and Durham.