While the number of foreclosed homes for sale in Ontario has gone down in the past few years, there are still great deals to be found! However not all foreclosures are worth the money! Make sure you know what to look for so you can find great foreclosed homes for sale in Ontario.
Pay Cash or Get Pre-Qualified Before Making An Offer
When buying a foreclosure, the process can be highly competitive, with many veteran investors paying in cash. You will want to be able to compete with these investors who have great knowledge of the market, who know when new properties become available and have the ability to make an immediate offer.
Depending on the home, obtaining traditional financing might require you to jump a few additional hurdles. The banks are investing in you, and if the home appraises for a low amount, you might not be able to get the loan you’re after. A cash offer can speed up the process by avoiding additional red tape from another bank. Many foreclosure investors deal only in cash, making the process highly competitive.
You need the freedom to be able to jump at a great deal before someone else gets ahold of it. As they say, the early bird gets the worm, and you don’t want to be waiting on the bank’s red tape while your dream home slips away.
Look For A Lender Who Will Provide Repair Assistance
Some lenders will consider a loan on a foreclosed property so long as you are able to show that the property will have a much higher value after some repairs. Some lenders will even offer repair assistance if they feel there is potential for a high return on the home.
Do ALL Your Homework
Some investors will bid on foreclosures without ever seeing them. They plan on gutting the house and redoing it for a quick flip, so they don’t take the time to see the house for themselves. By going to see the home yourself, you will be able to see a lot more than what the pictures tell you.
- What are the other houses in the neighborhood like? Are the other houses owner occupied? Are the homes well maintained?
- Maybe the listing agent took pictures hastily and forgot to mention the 2 car garage or the new covered patio in the backyard.
- Know what other homes are going for, as well as the history and demographics of the area.
- You should always have an inspection done, so you don’t end up buying a “Money Pit” house!
Work With A Pro
If you are in the market to buy foreclosed homes for sale in Ontario, and you want to find the best opportunities, you will want to work with a seasoned investor. They can help you to work with the bank, set your terms and navigate the process of purchasing foreclosed properties.
A licensed realtor can help you find deals as they become available, and help to steer you away from homes with potential problems. They can also help you find Power of Sale homes on MLS by searching for keywords such as “Bank” or “Trust”.
However, at the end of the day, you are ultimately responsible for the home you buy.
If you are looking to buy a foreclosure for a fast flip, you might want to think about partnering with a seasoned investor who can show you the ropes, or work with a company like House Deals GTA who can help guide you throughout the entire process.
Many foreclosures, tax sales, and powers of sale are publicly available on-line. These properties are often also advertised through a listing agent, who you can contact directly with your offer. Follow publications like The Ontario Gazette or Ontario Tax Sales online for great deals too.
The bottom line is you just want a great deal and you don’t care if its a foreclosure, a tax sale or a private wholesale property. You do need to prepare for an impersonal, and competitive process for these types of properties. Think like an investor, and do not get so caught up in “getting a deal” that you pay more than you should!