The Montreal foreclosure market is a little different from the rest of Canada and the United States. That is mainly due to a different law system. Quebec operates on the Civil legal system while the rest of North America abide by the Common law system.
The law and banks
In the old foreclosure laws, banks were not allowed to make a profit on homes that were foreclosed. Recent law changes have now opened the door to banks profiting from homes that were repossessed. This has changed the way Montreal foreclosures are sold.
Selling Montreal Foreclosures
Banks obviously want to make the most profit they can, so they get the best people to sell their houses; they use real estate agents. The agent prices the house at or above market value to try to get the best price.
Here are the differences:
Advantages
-->The bank first wants to make its money back and second make profit.
-->A low offer that is at least above what the bank is owed has a good chance of being accepted. This is only offset by competition.
-->The average discount on a 200 000$ home is 20 000$ - 30 000$.
-->After a certain time the bank will accept very low offers.
Disadvantages
-->Competition tends to be high unless there is a serious problem with the house such as a failed foundation.
-->The bank can in no way be held responsible of any hidden or latent defects.
Buying Montreal Foreclosures
The way you get access to foreclosures is by contacting a real estate agent or you can easily get it online by sign up to the Montreal Foreclosure List.
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