10 Easy Steps to Understanding Foreclosures & Power of Sales in Court

Here are 10 easy steps to understanding what happens in a Foreclosure or Power of Sale once the offer is accepted and waiting for the court approval.

1) You have a firm deal in place with the lender—deposit has been placed in the Realtors office trust
account.

2) The lender requests a court date to approve the sale. Usually the court date is 2-4 weeks after the
request by the lender’s lawyer.

3) The property can still be shown while waiting for the court date by other prospective buyers. They will
also have the ability to know the accepted offer price that you negotiated with the lender.

4) If another buyer is interested in the property and is willing to offer more, they have the opportunity
to compete against you and your accepted offer in court.

5) If there are no competing offers on the court date, and the property owners have not paid the arrears
in full on the eleventh hour (very rare, but have seen this happen), the judge will review the file and
approve the sale.

6) Upon another buyer or buyers submitting competing offers in court, the buyer must have a subject
free offer, deposit check by bank draft, and be ready to close within 10-30 days.

7) The competing offers are put into individual sealed envelopes (sealed bid process). The original offer
may change, improve, or leave the offer as is, and resubmit as well. The judge will open all sealed bids
and deem which is the best offer for the lender.

8) Price, completion date, and deposit will dictate which of the competing offers the judge will approve.

9) Upon approval, the process of closing is similar to a re-sale completion.

10) Note: make sure your correct full legal name, contact info, and how you want the property
registered is on the purchase and sale contract. Once the courts have approved the contract it cannot be
changed by going back through the courts. Instead, it’s an expensive process for a minor change that the
buyer will be responsible to pay.

Read more here

Are you prepared to be the Judge, Jury, and Executioner on a Foreclosure or Power of Sale property?
Surround yourself with a strong and knowledgeable team.

To receive a list of foreclosures contact us here or call 604-850-5040.