Cell: 604-855-2521 |

Buyers Beware – When Buying a Foreclosure. Read This!

Let’s say that you have put an offer on a foreclosure property, and it is accepted by both parties. Before the court date is requested the Seller (usually a Bank) asks you to sign a document called a “Schedule A”.

What is a schedule A?
This is one of the most disgusting documents you will ever see. It says that you are willing to take the house “as is, where is” at the time of the possession (the time you will get the keys). If the house is no longer there, or is damaged, vandalized, burned, flooded, is missing all the appliances…it is YOUR problem!

Why would anyone vandalize the house you bought?
Well, you need to remember that the people living in the house before you get possession are no longer owners – they are tenants living there free with absolutely no obligations to maintain the property. Sometimes these tenants are quite angry that their house has been taken away from them.

Thankfully we live in a part of the world where these things are rare.
But it is a scenario that exists, so you should prepare for it rather than ignore it. Talk to your Realtor about how to avoid problems when buying a foreclosure.

Do you have other questions in regards to foreclosure properties?
Send me an email and I see if I can help.



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What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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