Thought about going after a bank sale? There are advantages and disadvantages to tackling those types of homes for sale.
The advantages of bank sale:
- You may purchase the home at a lower price then it otherwise would have been sold.
- The home is often vacant.
- The negotiation process is much the same as a similar home. The price is negotiated and subject too’s are included.
The disadvantages of a bank sale:
- The home is as is where is, the bank makes no warranties or guarantees about the home. Thus there is no Property Disclosure Statement.
- The negotiation process often takes up to two weeks rather then a few days, as you are deal with lawyers.
- Subject removal does not mean you have an official sale. This will trigger a court date, where in which a judge will decide whether the accepted offer is acceptable or not. Additionally all previous buyers that have viewed the home are notified of the court date and accepted price, whereas they have the opportunity to submit a competing bid on the day of.
- Items within the home may not be there on the date of possession. Until the date which the judge accepts the sale the owners have the opportunity to take items from the home.
- If HST is applicable the bank will not pay for HST, it is the responsibility of the buyer. As well the bank is not responsible for providing any HST applicable certificates.
A foreclosure can be a great opportunity to purchase a home at a lower cost; however one must always keep in mind that an accepted offer does not mean you will an accepted offer once you leave court. If there are many completing bids, yours may not result in the wining bid.
Don’t let this stray you from viewing a bank sale, speak with a Realtor and they will explain all the details and take the stress out of the sale. They will be at your side on the date of court, so don’t worry about making the wrong decision or being confused. This is our job and our goal is to make your dream of owning a home come true. :)
If you have any questions on a foreclosure just send us a message or give us a call.