May 20, 2024


Mad about real estate

Foreclosures Prone to Success in Canada

In recent times, in Canada and United States, thousands of homes and properties are taken over by banks and Government institutions due to non mortgage payments resulting in foreclosures. Such properties are sold to real estate investors for half the price. Under such scenario, opportunities to buy low cost foreclosure homes are available in plenty for real estate investment.

Smart investors are making huge profits by buying less than half the priced foreclosed homes such as bank foreclosures and pre foreclosures at Foreclosure Auctions and selling them to other buyers for a higher profit margin. The safest way of investing is in real estate. It can create enduring financial wealth for the investor.  The investor must combine methods used by the professionals and with a proven real estate strategy, can make a substantial profit. Opportunities of distressed property situation are plentiful and making the best bargain is the need of the hour for the clever investor.

People who have never thought of making millions are now doing so in Canada investing in real estate business. One can really become a sound real estate investor with a little help and advice from professionals in the real estate business. Many investors across the country have benefited by investing in the real estate in recent times. So many professionals are giving real estate investing lessons and conducting courses that include all the necessary resources like bank lists, foreclosure lists, foreclosure lender lists and other valuable information.

Foreclosures happen with the cases of non payment of taxes too. When a home maker is not able to pay real estate taxes on their homes, the tax authorities will foreclose the property themselves or they may sell the taxes in the form of tax liens to other real estate investors. These unpaid liens are known as tax lien certificates. By investing in tax lien certificates, an investor can make between 16{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} to 25{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} return on their investment or foreclose the property for less than 10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the property’s market value. It is surely a good investment for the investor.

In Canada, pre-foreclosed properties are not advertised to the public the property owner has been given an opportunity to pay their pending loan balance. The process of foreclosure can take about 8 months which gives an ideal opportunity for the investor to work with the distressed property owner without facing competitions from others. People who are unable to pay property taxes or mortgages face foreclosure proceedings at the Supreme Court.

The court in Canada gives the home owner a limited period to repay their outstanding debts before the property is handed over to the lender to sell at a substantial discount. The distressed owners need to sell their property before they lose all in a foreclosure. Hence it is the right time and opportunity for the investor to buy the property well below the current market price from the distressed home owner.

Actually it is a win-win situation for all.

The distressed property owner wins because he gets to sell their home and repay the loan and still have their credit worthiness intact.

The lender wins because he is able to avoid a long and expensive recovery.

The investor wins because he gets to buy a heavily undervalued property and makes a gain deal with substantial profit.