10 Questions you should ask when looking at buying a foreclosure or bank sale property in the Okanagan - Raymond MAASKE

10 Questions you should ask when looking at buying a foreclosure or bank sale property in the Okanagan.

If you are a person looking to purchase a foreclosed home, also known as a foreclosure, this applies to you. This includes those who are a real estate broker, a real estate sales representative, a real estate developer or a real estate investor – or just a buyer.

1. What is the usual wait time for acceptance?  Because we deal with lawyers in Vancouver and Toronto, it takes longer than normal – at least three business days often times longer, much longer.
2. Can a buyer inspect the property before making a bid and how long are they allowed to inspect it?  Yes, as long as you like (…….unless the occupant will NOT grant access.) Vacant – no problem.
3. After acceptance, I understand it goes to the courts whereby other offers can be made.  How beneficial is it to make the first offer and do all of the work and then be outbid by others? 
1. Would it be wiser to wait until the first bid is in?  Yes in most cases.  You should still do your ‘homework’ but be cautious as you are buying “AS IS WHERE IS” (which is a quasi-legal term for – YOU ARE ON YOUR OWN). You can go to substantial financial and emotional expense and end up with nothing so you must try to manage this in advance.  Your Realtor will assist with this………   However, sometimes you are left to make the ‘first move’ but make sure you have a strategy – again I can help with that.
4. How often are court dates for foreclosures and are they publically posted, and if so, where?  This varies based on volumes of foreclosures.  I was in Vancouver Provincial Court room #32  and #33 which saw over a dozen each on the two days I was there.  However, locally here in the Okanagan that would be less.  Last time in Penticton there were only 2.
5. What is your experience for the average number of foreclosures on a particular court date? See #4 above 
6.  I would assume the deposit would be refunded if my bid is outbid, but need clarification.  Yes, usually you should allow for at least 3 full business days.
7. If you are representing me in the proceedings and I do not win the bid I would assume
   you would still charge a fee. 
1. Is that correct, and what is your fee?  I can do so BUT do not.  Foreclosures are an ‘investment’ and a lot of work for you the buyer and me as well - and I only want to benefit IF you do. 
8. From your experience, are multiple bids (how many) common on court day?  This varies; as more foreclosures come to market, the demand is ‘saturated’ and favors the buyer.  Again, I can advise you on each individual property.
9.  In addition, what percentages of homes does the owner occupy during foreclosure?  After months and months of the ‘nasty’ letters from the banks/lenders then the lawyers of banks/lenders …time and events usually leave us with a vacant property.  These are NOT fun times for anyone involved in this process.  As a person I do my best to be sensitive to everyone involved and as a Realtor® I do the same.
10. What are the proceedings, time lines, to have them vacant after the property is purchased?  If vacant, I have seen as quickly as 14 days and if occupied 90 days.

In conclusion, I believe that there are many opportunities in this current market condition with respect to foreclosures BUT you need a GOOD Realtor® and that Realtor® WILL find YOU a GOOD deal -  an Okanagan foreclosure or otherwise.