Here are the types of properties you will be notified of:
1. Foreclosure Sales
Properties that have been repossessed by a lender due to the borrower’s failure to meet mortgage obligations. These properties are often sold below market value to recoup the loan balance. More commonly referred to as bank sales in Canada.
2. Power of Sale
Similar to foreclosure, this is a clause included in a mortgage in Ontario allowing the lender to sell the property without court intervention if the borrower defaults.
3. Estate Sales
Properties sold as part of the administration of a deceased person’s estate. These sales may offer good deals if the heirs are looking to liquidate assets quickly.
4. Tax Sales
Properties sold by municipalities for unpaid property taxes. Buyers can potentially acquire properties at significantly reduced prices, but these sales often require upfront cash payments.
5. Bank-Owned Properties (REO)
Real Estate Owned properties are those that have gone through the foreclosure process and are now owned by the bank. Banks may sell these properties at competitive prices to offload them quickly.
6. Distressed Sales
Sales by owners under financial or personal pressure, such as bankruptcy or divorce. These properties might be listed below market value for a quick sale.
7. Short Sales
Occur when a property is sold for less than the outstanding mortgage balance with the lender’s approval. Short sales are less common in Canada than in the United States but can happen.
8. Auction Sales
Properties sold through an auction process, which can include foreclosures, tax sales, or estate liquidations. Auctions can offer opportunities to purchase properties at lower prices, but they also come with risks and often require upfront cash.
9. Expropriation Sales
Properties that government entities have purchased or appropriated for public use and are later sold. These sales are relatively rare and can involve complex negotiations.
10. Fixer-Upper Sales
Properties in need of repairs or renovations. Investors often seek these out for their potential to increase in value significantly after improvements are made.
11. Assignment Sales
Properties sold before they are built, based on the plan alone. These can offer early-bird prices that are lower than the finished property’s market value.
12. Developer Incentives
New developments where builders offer incentives like reduced prices, upgrades, or flexible financing options to attract buyers during the initial sales phase.
When looking for hot deals in the Canadian real estate market, it’s crucial for investors to conduct thorough due diligence, understand the potential risks, and sometimes be prepared to act quickly or have upfront cash available. Each type of sale has its unique characteristics, opportunities, and challenges.