Blog by Ken Morris

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I recently showed a property in foreclosure. There are some issues to consider when thinking of buying a property that's being sold off by the bank.

Bank Repo Thoughts Blog Transcription

Hey there! Rob Reynar here, not a terrific property from a condition stand point that I'm in today. I'm actually in a foreclosure property. This is an acreage listing that is just outside of Cochrane. So this house is in foreclosure and one of the neat things about foreclosure is that a lot of times the property isn't in the greatest of condition. It's been hard lived in, abused and now it's empty. A couple of things about foreclosures, a lot of people under the misconception that you're gonna get this great bargain off of the list price because it is a foreclosure. Not necessarily the case, banks these days because of their low carrying cost are willing to sit on a property until they get what they feel is the fair market value for it. Now you might be in a position where the list price of the home is actually under what it would be if it was you know fully livable and renovated and clean and acting like a normal home. So their almost already devalued a little bit. You're not necessarily gonna get that extra jump off of the list price that you would expect. The banks they need to make back what they have invested in it and foreclosure have usually racked up a bunch of costs, lawyer bills, bank bills, etc. So foreclosures aren't always the deals that you think they're gonna be, they could however be listed under value when they do go on the market. The other thing to remember on foreclosures is you've got a lot of work to do and there are absolutely no warranties and representations on a property. So you have to really do your due diligence and make sure it's the property for you. Question, do you seek out foreclosures trying to get a deal on a home just because it's a foreclosure? Love to hear your comments on this,, R-E-Y-N-A-R,, talk to soon. Buh Bye!

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