Thinking of Buying a Foreclosure? What You Need to Know
Purchasing a foreclosure takes a few steps:
First, you need to view the property. Properties in foreclosure are sold "whereis, as is"
After viewing, if you are interested and want to proceed further, you make an offer. If yours is the first offer, it may have subjects attached to it. The offer will normally be countered as with any purchase and sale of property. The offer may be subject to financing, inspection, or clearing of title.
Once the offer has been accepted, a lawyer will draft up appropriate documents which will be taken to court. A court appearance will usually take place approximately two (2) weeks after subject removal on the property
Up until the court date, the property will continue to be shown.
On the court date, any other offers may be presented in a closed envelope with a deposit cheque in the form of a Bank Draft and a completed Schedule A which your realtor will give you. All other offers that come forward must be higher than the original offer and must be subject-free. If this happens, the original bidders may choose to change their bid to a higher one.
A Judge will look at all offers presented, and only the highest offer will be accepted.
Once the offer is accepted, the person with the highest bid, will become the purchaser. It is their duty at this point to seek out a lawyer of their choosing, and the property purchase will proceed just like any other purchase and sale.