COURT ORDERED SALES
Again here is the short answer... Not, in the majority of cases! Let me
explain what is involved here. Inexperienced agents who have never been in this
situation, are not who you want to represent you here.
WHAT IS
Court ordered sales are just that. A judge decides to force a sale, eg: When
an owner has not met financial obligations such as mortgage payments, when a
divorcing couple cannot come to an equitable agreement, when the tax man wants
to be paid, when a property has been taken away by law enforment under the
" Proceeds of Crime" legislation, and a whole host of other reasons.
These come up for sale more often than you think, bank foreclosures,
the most common. After every single avenue to collect has been
exausted, by the bank, or whomever is owed money, usually quite a long
period of time, an application is made to the court, and a judge finally rules
to sell the property. The seller, has no more to say about this, unless
they can come up with some money real quick. When it has gone this far,
that usually will not happen. An agent is chosen, the house is for sale.
What happens next?
This is where it looks like a good deal. Banks have had to do this many
times and know exactly what works. The property is usually underlisted. Just
like I have said before, this is how you get competing offers, or multiple
offers, a bidding war begins, the result, a much higher sale price. It is
the court's duty, to protect the interests of the bank and get the highest
possible sale price.
AS IS WHERE IS
After dozens of buyer's and their agent's have flocked to this new listing
because of what appears to be the deal of a lifetime, they all write offers.
The offers must be completely subject free, except " subject to court
approval" and an '" AS IS " Upon Possession, clause
needs to be in the offer as well. You see... the owner of the property has no
more say, and upon being forced to vacate, does not care about what the
condition of the property is. Have you ever heard the term " nothing left
but the kitchen sink?"....I have seen some of these homes at possession
time, that did not even have the kitchen sink left!
THE BIDDING WAR
Ok, so now your offer has met the conditions, it's time to
present... Not so fast! When the selling agent and his principal ( bank or
whomever), have decided they have enough offers ( which could take
weeks), a date with the court has to be set, to present all the
offers at the same time. The judge will accept one of these offers. So,
you wait for this date, certified deposit cheque is attached to the offer, you
and your agent, or just your agent appear in court. When your turn comes up,
and you approach, you will see that the judge has already posted the best offer,
which at this point, is willing to accept.This is usually posted on a
table in front of the room. The judge will then ask all the agents who had a
lower offer, to retrieve them, giving them the option
of re-submitting them at a higher amount than the posted one.
This is done, after allowing them a short conference with their
buyer. Since these offers are subject free, nothing else matters but the
price. The highest price wins, no if's and's or butt's. The procedure
is designed in this matter, to solely benefit the bank, or whomever is
owed.
At this point most of the buyers and their agents leave, not willing to out
bid the posted offer. In most cases one or more buyers remain, re-submmiting a
revised, higher offer than the posted one. The judge now accepts the best
one, and it's all over. The property just sold for as high or higher than
any of the comparables. Upon possession one problem remains, it's not
known what kind of condition the property will be in. As I have said so many
times, I work for you. In this case it is really out of my control.
MY FRIEND GOT A STEAL ON A FORECLOSURE!
Generally, the only way to get a good deal on a foreclosure,
is if the economy is in a slump. When interest rates are high,
unemployment is high, and there are more properties for sale than there
are buyers. In this case when a foreclosure or court ordered listing is on
the market, there will not be competing buyers. The listing agent may
have to wait for months before the first offer comes in. When that one does come
in, an appointment with the judge is made, that single, (usually low ball
offer), is submitted, and the judge will accept it. That's when you get a
steal!
The current market is definitely udergoing a major correction
at this time! I don't know if it can be called a slump yet because some of
the factors needed for a slump have not yet materialized. Those factors are
high interest rates and high unemplyment. However if you are interested in
dealing on foreclosures now is the time to start looking.
I have been involved in many court ordered sales, I can prepare you for this
process and make it as easy as possible to give it your best shot!
www.davidvalente.com
Prudential Sussex Realty West Vancouver. Committed Service. Real Estate SALES. Real Estate North Vancouver. Real Estate West Vancouver. Real Estate Downtown Vancouver. Real Estate in the Lower Mainland. Buy and Sell Real Estate. Luxury Real Estate, Waterfront Real Estate, Investment Real Estate, First Time Home Buyers. Specialized in Residential Real Estate. Dave Valente. Deep Cove Listings. North Vancouver Luxury Real Estate Agent. Fine Homes International. Dollarton Real Estate. Deep Cove Homes For Sale. Deep Cove Realtor. North Shore Real Estate Agent. Real Estate Court Ordered Sales in Vancouver. www.deepcovelistings.com www.davevalente.com 2010 Olympics Vancouver Real Estate.