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The Myths and Misconceptions About Power of Sale Properties
WHAT YOU SHOULD KNOW BEFORE BUYING Over the course of my 30+ years as a real estate agent, I have been on the listing and selling side, representing buyers who wish to purchase a home listed under Power of Sale. I sold a home a few years ago in STREETSVILLE under Power of Sale and I had many clients and perspective buyers calling. They called because they thought they could "get a good deal" and potentially purchase the property at less than market value.
This is a misconception many people have, and this is NOT the case. The Bank or Financial Institution selling the home must sell the property at fair market value or risk being sued by the previous owner. The bank must, at a minimum, the outstanding amount owing on the property. In addition to that, they must have sufficient funds to pay the real estate commission and any surplus is paid back to the owner.
THE BANK'S POSITION Once the Bank has taken possession of the property, after default by the owner, the Bank takes full control of the property and usually lists with a Realtor on MLS to get the property sold. They typically require all offers to be faxed, and ask for 48-72 ... more
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