Let’s say Joe misses his mortgage payments for 3 months, he will get a Demand Letter from the Lender saying that if he doesn’t pay the entire mortgage, he will be facing foreclosure.

If Joe still doesn’t pay , the Lender goes to Supreme Court and files a Petition which is like an application to foreclose on Joe.

At a court hearing, the Judge reviews the evidence and makes a court order called an Order Nisi, which sets the terms of the foreclosure. Most notably, a Redemption Period is determined to allow Joe a set amount of time to sell the property or come up with the money to pay back the mortgage. This is typically 6 months.

Once the Redemption Period expires, the Lender now has the right to sell the property and will usually list the property with a Real Estate Brokerage.

When an offer is accepted and subjects are removed, the offer will be presented to the Judge in court. The Judge will ask if there are other parties in the room that want to bid for the property. If there is, the property will be sold to the highest bidder. If there are no other bidders, if adequate marketing was done and if the price is acceptable to the judge, the sale is approved and the Lender will keep ALL the proceeds – even if it’s more than what was owed on the mortgage.

So when is best time to buy foreclosures? That would be during the Redemption Period when Joe still has a chance to save the equity in his house and save his credit too. This is before the property is listed and before the general public knows about it and can bid on it. When it is sold during this time period, Judge approval is not required, and the seller is extremely motivated to sell for a substantially reduced price.

To learn more about how to profit from BC Foreclosures.

> Pre-Foreclosure

Let’s explain it like this: let’s say Joe just got laid off yesterday, and he’s worried about how he will make his mortgage payments. At this point, he is not in default yet because he made his mortgage payment last month.

But he is probably considering selling his property because he doesn’t know if he can find another job and continue to make mortgage payments. Most investors consider this a “pre-foreclosure” situation, because the foreclosure process has not started yet.

> Demand Letter / Petition

3 months pass by, Joe still doesn’t have a job, and he’s missed 3 months of mortgage payments. Now his bank/lender sends him a demand letter asking for full payment of his entire mortgage immediately. Joe can’t pay it, so the bank/lender begins a legal process called a foreclosure in which the bank/lender will legally repossess his house. This is done by making aPetition in Supreme Court.

> Redemption Period

At the Petition, the Judge will give Joea Redemption Period, a set period of time to allow Joe to sell the house or repay the mortgage by other means.

The Redemption Period is usually 6 months.

If Joe sells his house within this period, the foreclosure process stops and he would have saved his house

from being repossessed. If he can’t do that before the redemption period then this will then lead to…

> Court Ordered Sale

The bank/lender will now have the right to sell the property. They will usually list it with a real estate brokerage which will make it available on the public MLS.

Once an offer is accepted, it is presented to the Judge in court.

> Court Auction

If there are no bidders in court at that time, the sale will be completed. If there are other bidders present, it is sold to the highest bidder even though there is an accepted offer from the buyer who came

from a realtor. Therefore, the price may get bid too high and the buyer must buy the property

without any conditions (with cash).

> The Best Time To Buy Foreclosures

If you have a way of knowing about a pre-foreclosure situation, then by all means, offer a solution to the seller. However, at this stage, the seller, like Joe in this case, may be just thinking about selling, but not that motivated – yet. Also, they are not that accessible, you would most likely have to know the seller personally.

The foreclosures on listings sites such as canadaforeclosurelist.ca are in the REDEMPTION PERIOD

before they are foreclosed on and after they miss their mortgage payments. This is the perfect time for you to approach the sellers because they are much more motivated to sell which gives you the chance to buy the property at a significantly reduced price.

And this is before it gets listed on the public MLS and before it is auctioned at the courthouse, which protects you from being outbid by someone else – even if only for $100 more.

Also, you can buy the property normally with a mortgage and with conditions, unlike a court auction which requires you to pay in cash.

More info on BC foreclosure Listings.

Some foreclosures are listed in the MLS (Multiple Listing Service) with real estate brokerages. Most people are unaware that if you make an offer on one of these realtor-listed foreclosures, you are not guaranteed the price the seller agrees with you. Even after you remove conditions, the judge still has to approve the sale price, not to mention that other buyers can place a higher bid on the property while the judge is approving the sale.

Pre foreclosure leads are foreclosure listings of properties that are not listed on the MLS and way before they are auctioned in court. These are lists of foreclosures that are still in the Redemption Period. This is the “grace” period that the judge grants the owners (usually 6 months) that allows them to sell the property or pay off the mortgage some other way. During this time, the mortgage lender has no right to sell or list the property.

With a steady stream of pre foreclosure leads, one can become an “insider” to deals that most buyers and investors do not have access to. Even realtors are not aware that these foreclosure lists exist. The few that do, however, are overwhelmed by the sheer number of properties on these foreclosure listings. They can range from hundreds to thousands of new pre foreclosure leads per year.

There are a couple of providers of these foreclosure lists in the BC region. You will find all the pre foreclosure leads of properties in Greater Vancouver Area, including Vancouver, Richmond, Burnaby, Surrey, New Westminster, Maple Ridge, Mission, North Vancouver, and related areas at these sites.

Learn more about our pre foreclosure leads.

The judicial sale begins with a Demand Letter to the borrower, giving the borrower a short amount of time to pay out their mortgage. Then a petition is filed in the BC Supreme Court registry, which starts an action: The Order Nisi, which fixes the time for redemption. The redemption period, usually six months, is the time period given to the borrower to redeem the mortgage, as well as the amount required. Where a lender (respondent) applies for such an order, he or she may satisfy the court that the value of the property is high enough to satisfy the costs of the sale and the claim of the petitioner. If the property is sold by judicial sale, the petitioner is entitled to recover the difference between the sale proceeds and the mortgage debt from the borrower.

Once a petitioner or respondent has been granted a conduct of sale, they act in the role of the vendor pursuant to the Court Order, only for purposes of disposition of the asset, and can now list the property for sale with a realtor.

When a party has expressed an interest in making an offer, their realtor or the selling agent will draft an offer, directed at the Vendor (usually one of the Mortgagees.) At this point their realtor should confirm that the purchaser understands that although they will be negotiating with the vendor and a deal may be agreed on, there is still a possibility that, when the offer is presented to the courts, the offer may be subject to a sealed bid process by other purchasers.

Once the offer is made and the terms are agreed to, the Purchaser commences their Subject Period. If the purchaser removes its subjects, the offer will be presented to court.

In the courtroom, the process works as follows:

* The vendor’s lawyer presents the purchasers’ offer to the Judge, (in foreclosure proceedings they are referred to as Masters.)
* The Master asks if there are any other parties in the courtroom who would also like to submit an offer. If there is not, and the appropriate marketing has taken place and the price of the offer is market value, the Master will approve the sale. If there are competing offers in court the Master will instruct all parties, including the original purchaser to leave the courtroom and resubmit their final offer in a sealed envelope to the vendors lawyer.
* After these offers have been submitted, the Master reviews the offers and approves the best deal.

The following chart has been reproduced with the permission of the UBC Commerce Real Estate Division.
Steps in a Foreclosure Process in BC
Demand Letter

A letter accelerating the loan and giving the borrower a short period of time to pay out the mortgage or else face foreclosure.
Petition

Filed in B.C. Supreme Court registry. The lender is the petitioner, while the borrower and all other charge holders whose interests rank in priority behind the lender, are the respondents.
Order Nisi

The first order of the court. It establishes, amongst other things, the amount required to redeem the mortgage and the time period given to the borrower to redeem.
Judicial Sale

The petitioner may choose to have the property listed for sale by the court. Unless special circumstances exist, the petitioner only seeks this order at the expiry of the Redemption Period (Traditionally 6 months).
Order Approving Sale

The court approves the sale of the property. If the sale proceeds do not pay the petitioner in full, the petitioner will seek the deficiency from the respondent borrower under a court action.

Order Absolute of Foreclosure

If the redemption period has expired and if:

1. the property is worth the same amount as the mortgage debt or more;
2. the respondent borrower is judgment-proof (i.e., no assets or money to apply towards a deficiency); or
3. there are no offers under a judicial sale; the petitioner can seek an absolute order of foreclosure, under which the petitioner becomes the new registered owner and all respondents are wiped off title. No further action can be taken against the respondent borrower after the court has granted the order absolute.

The reason behind the steady rise of mortgage foreclosures Canada is because a lot of borrowers are now being seriously hit by a variety of financial problems due to the whole global recession thing. This made them loose their homes from their lenders inevitably. In return banks and other lenders offer these houses in very low prices in order for them to recover the lost amount. The prices placed on repossessed homes are below the regular prices set in the real estate and in the open market. This then serves as the perfect opportunity for business minded individuals to get greater profits out of these homes.

Mortgage foreclosures Canada these days are a common thing. But then, even though this may seem as a negative picture for other people, this however serves as a great window of opportunity for the others. What’s good with these repossessed houses is that they are of the same quality with the houses that are being offered in the real estate. Their only difference is the price. From this fact, there is probably no reason for you to let this kind of opportunity pass. Furthermore, the prices of these houses are still negotiable which provides the possibility of these houses to fall under much lower prices. The negotiation however, directly depends on the amount of repairs that needs to be done on the involved house.

Mortgage foreclosures Canada also provide the perfect solution for families who are in search of good quality houses but are not able to cope with real estate’s soaring price tags. From these foreclosures, families are able to choose from a very wide selection of houses in very reasonable prices. Imagine the things that you can do for the extra money that is spared from buying a very cheap house that is of equal value to the houses on the real estate. You can even buy your family a new car or get them first on a vacation before settling permanently to your new house. The growing number of foreclosures is indeed not just a bad picture to quote with. It also opens up a much better tomorrow for other persons and families as well.

I have never used software for real estate foreclosures. The only time I think some kind of software would be handy is some kind of prospect management software that keeps track of all the foreclosures sellers that you are dealing with. But unless you are buying a lot of properties every year, I don’t think it’s that necessary.

Tools I use on every deal that I analyse are:

1. Property Comparables Calculation Tool

I use this spreadsheet to quickly compare the prices and features of 2 or more similar properties to determine the market value of a foreclosure property I’m looking at.

2. Cash Flow Analysis Tool

By inputting the rental income, itemized expenses, mortgage amount, down payment, and other fields, I can calculate the monthly cash flow down to the penny, the cash-on-cash return on investment, the net return on investment over a 1-5 year period, all in less than 30 seconds.

3. Buy Fix Sell Analysis Tool

I use this for foreclosure properties that I intend to do quick flips on. I input the potential sale price, the detailed costs for renovations, carrying costs, my desired profit, and it will calculate the maximum price I am willing to pay for the property in order to have a profitable deal.

4. 10-Year Investment Analysis Tool

For foreclosure properties that I intend to hold as a long term investment. I use this spreadsheet to calculate my returns over 10 years.

I also use forms that I complete by hand for easy analysis.

1. Property Selection Score Form

I use this to give a “score” for a certain property I’m looking to determine if it’s a high enough score to be considered a deal worth further investigation.

2. Crunching The Numbers Deal Analyser Form

An all-in-one form I use to do a final analysis of a certain deal. I plug in the numbers I get from all the tools and get a complete picture with this form.

So this is what I use as far is investor real estate foreclosure software. If you like the K.I.S.S. principle (Keep it simple stupid), then these tools and forms may benefit you too.

With this you can be sure of a stable economy, but unlike cities like New York and other European cities, there are many rustic scenes you can enjoy in Edmonton, Alberta. Right now the best means for you to enjoy all these great benefits is to take the chance to invest in foreclosures Edmonton AB for Alberta.

You may not find that much properties in foreclosures Edmonton AB but it is expected to rise as more and more people are giving up their homes. It’s a great chance for those who love the peaceful life in Canada to start building their own dream home. You can buy a lot of properties in a cheaper price as compared to their original price which is in millions. But if you are thinking of a good property investment as well, foreclosures Edmonton AB are also great picks. You can in fact sell your purchased properties in less than half their original price to triple as the economy gets better. Canada will always be a good place to invest on, where there are no serious calamities to be afraid of and international crimes are known.

If you want to take your entrepreneurial to the best test, try foreclosures Edmonton AB and you are sure to land in one great opportunity, the safest there is available. It’s good to always take the chance and invest in the best time.

It takes a brave heart and a good foresight to take advantage of foreclosures Edmonton AB. With rare opportunities to invest like these, all you need to do is look for the right person who can help you choose the right investment and go through the correct process with the right documents and other important records considered.

The judicial sale process of foreclosures BC Canada also involves property licensees. If a property is foreclosed, the owner of the property can apply for a judicial sale of the foreclosed home. When a demand letter is sent to the owner that’ when the sale begins. The court usually allows for a period of 6 months for the owner to pay the mortgage and the extra fees involved in the sale.

When all these are done, the owner can then start looking for a realtor to help him sell the house. The process done in the selling of the property is bidding and the realtor has a significant role to play. When there’s a prospective buyer the realtor is the one to explain to them the situation and he is also the one to make the draft for the sale. That means that the court is the one to decide on who is going to be the new owner of the foreclosed property.

With foreclosures BC Canada then any investor is safe from hoax agreements and false documents to go with some properties. But the best reason for buying foreclosed properties through foreclosures BC Canada is the opportunities for you to earn more in the end or the chance for you to start a new life in this peaceful yet progressive area.

There are many opportunities for you to pay these soon to be liabilities on your part as the new owner. There are many loan opportunities that will allow you to pay the down payment for your new home. An example of this is the new bill approved by President Obama that gives a cut of about $8,000 on tax for those who are buying their new home for their new family.

There are also many other government loans offered in the rural areas for you to start a new life in your new home. In foreclosures BC Canada you will be able to acquire property in very low prices. Imagine that those multi-million properties are now being sold in thousands. Perhaps the best idea here is to buy a property or two and work on making it better, developing it, then selling it triple maybe. That would make it truly a great investment.

Foreclosures Alberta Canada is a great source of your property investments or your greatest leap to making your dream house a reality. You will find great value for your money when you buy foreclosed homes at very low prices. Remember the banks and lenders are only after the unpaid amount of the previous owner so look for documents and records. You can surely use the rest of your savings to more things to go with your new home but it can also go to more properties to invest in and sell in the future with higher prices to go with it.

Foreclosures Alberta Canada in that way provides you the opportunity to earn well in real estate and learn the techniques. Through these foreclosed homes, you are more likely to put up your own real estate business. You can start from the simple process of buying one property to two and focus more on a bit of redesigning and property development to make it more salable when the time is right.

Foreclosures Alberta Canada can make you a better investor in a way but it also provides you with more benefits as that of having your dream house, having a happy family, a safe environment for your children to grow and to make sure that they have better opportunities to choose from when it’s their time to work and be successful in their own fields.

The best part about investing in these properties is that they are under court rule. That means that you are safe since the foreclosed properties that you are buying have passed through judicial procedures. In fact the judicial court is also the one to decide on whose favor the home or property is given to.

Why invest now? Today when there are many homes and real estate properties being added to foreclosure listings Canada, you can buy multi-million properties in just thousands worth of money. Given a few years, you can resell these properties for a higher value. It is said that the recession is not expected to stay here for too many years. You just have to work on a few redesigning and refurnishing if you want to make these properties more saleable.

What are some information that you can find in foreclosure listings Canada? A good one can provide you great choices on properties according to type such as residential or commercial and if it is going to be an apartment unit, a villa, a townhouse, a log home, or a resort type of property. You can also sort out your choices according to location. Would you like it to be in Toronto, Vancouver, Calgary, or elsewhere in Canada? A good foreclosure list would provide you as well even the specific details you want for your property: the number of bedrooms, the number of bathrooms and the even the kind of roof for some. Though you really don’t have to go through these details, it’s good to know that you can go as far as you want in choosing the best properties for you to invest in or to build your new life in.

How can I afford these properties? There are means to pay for these properties even if you really don’t have such perfect credit history. A good foreclosure site will be able to provide you some options to have access payment for these properties such as loans in your particular area or federal loans granted by the government like the $8,000 tax credit approved by President Obama for family starters who want a home of their own.