I am beginning to see more listings for foreclosures and judicial sales and also beginning to receive more inquiries regarding these types of listings. In 2015 the residential market saw exceptionally low record foreclosure rates so we aren't as used to seeing them. As such, here is a bit of information about what to expect.
Judicial listings are those where a property is being sold by order of the court. The owners on title are often in financial hardship, part of a dispute or some other court matter. In the case of judicial listings, the property owners still remain on title and most often live at the property.
Foreclosure listings are those where the property title has been transferred to another party such as a bank, lender or lawyer and they are selling the property. These properties are often vacant.
Some things to consider:
1. These properties are often marketed at close to market value. Careful review of pricing is needed as they aren't always a great deal.
2. A real property report (RPR) is often not available to buyers. They purchase at their own risk in most cases.
3. Condo documents are often not available to the buyers. Buyers have to access these documents at their own cost in most cases.
4. The property is often sold as is/where is on the day of possession with little or no property history available. The buyer must accept this condition.
5. Offers on these properties are presented in court and are public documents. Most often offers are required to be without any conditions such as financing or home inspection. It is very important to speak to your own lender when considering such a property as your approvals need further review and to be prepared prior to making an offer.
A couple other items only apply to occupied properties or where owners are still on title:
6. Access can be difficult and owners may or may not be at the residence.
7. Owners on title can pay down their mortgage and keep the property up until the day they are no longer owners.
8. Be respectful. You never know someone else's situation.
If you wish more information just contact me directly.