Showing posts with label Foreclosure. Show all posts
Showing posts with label Foreclosure. Show all posts

Tuesday, April 06, 2010

FAQ's on power of sale properties

I had a client email me with question about power of sale properties and I thought I would share my answers with you.
Mark

Hi Mark,
I saw the property below listed on the most recent POS listing.
I read that usually POS properties are sold "As Is".
I am sorry I am not familiar with some of the terminology and would like to
kindly ask for clarification:
- Pls Call The L.A Before Preparing Offer??? - what does this mean?
- Pls Allow 2 Banking Days Irrevoc. On All Offers.???
- No Survey, Property Being Sold As Is, Where Is Condition As Seen From
Outside Property As Per Mls - what is MIs

Thank you,
M.


Hello M.

Good questions! :-))

"As is" means that you are purchasing everything in the current as seen condition, whether or not any systems such as plumbing, electrical or otherwise are function or not. It's up to you to determine the current state of all systems in the house and we do this by performing a home inspection. The home inspection will uncover any deficiencies in the property.

"calling the listing agent before preparing offer" usually means that there are very particular disclosures that must be made prior to submitting an offer, such as the fact that the property was used as a grow house or something similar.

"2 banking days irrevocable" means that the bank needs 2 banking days to review and respond to your offer

"No Survey, Property Being Sold As Is, Where Is Condition As Seen From Outside Property As Per Mls" means that the agent and the seller are not making any disclosures regarding the current state of the property and that you must see the property only from the outside and your offer must be conditional upon seeing the inside of the property and you must make your
decision to proceed based upon the outside of the property and as per the MLS listing agreement.

MLS is Multiple Listing Service and these are all the listings that are available to any member of the mls through TREB or mls.ca

I hope this helps, please let me know if you have other questions.

Thank you,
Mark

Wednesday, February 03, 2010

Why does maintenance fee show $0 for many power of sale properties?

This is a common question that I receive about POS properties and zero maintenance fees on the mls listing.
Hello Mark,

Thanks for your daily information and sure helps...I have a question for you some of the listing says $0 maintenance fees what does that really mean? Is it that the POS includes the maintenance fees for one year?
My answer is:
Hi B.

Thank you for your real estate inquiry.

The maintenance fee shows $0 because the bank does not want to take any responsibility for any oversight or underestimate of the fee, so they put $0.

We/You have to find out from us what the average is for that type of unit.

When you submit your offer, we will receive a status certificate that shows the exact fee for that particular unit.


Mark

Friday, January 29, 2010

Power-of-sale, Foreclosure, Foreclosures and quit claim question

this was one of those feel good letters I just received from a person and
thought I would share the information with you
Enjoy!
Mark

Mark,
You have one of the best site for general information and quality for make a
house sold.

My name is A .G., I am the mortgage holder of this house that we sold in T .
Ontario about three years go'.

The people in the house have develop financial problems. They start running
too many charges where now start default in not making the payments.

My question is: should I execute Power of sale or in return to have the
house with list damage I should accept the quit claim. Read about Power of
Sale and quit claim on my site here:
http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

They have zero equity in this house. They only put down $5000 on house price
of 220,000. The command price in the house is less now then when was sold.

I wish you were here and I would hire on the spot. Your luggage of
information is outstanding

Thanks,
A.

Friday, November 06, 2009

Conditional offers and Banks selling under Power of sale

I had another email inquiry with good questions about POS properties and thought I would share it with you.
Mark

Hello Mark;
I have been following your listings for the last couple of weeks now, and have read most of your information on the ins and outs of PofS shortfalls / opportunities and have a quick question on the list price. Where does this number come from? Is it negotiable?
Also are home inspections possible? or better still home inspection reports already completed available to view? Will a bank do a mortgage pre approval based on a Pof S. property?

At any rate. I am getting closer to finalizing my separation agreement and will be buying shortly thereafter and need to ensure I am not wasting my time studying Pof S.
Any feedback would be helpful.
thanks

BW



Hi BW,

Thank you for your real estate inquiry. These are all very good questions!

The list price is typically market value and often true market value, read about both here:
http://www.mississauga4sale.com/Power-of-Sale-True-Market-Value.htm
http://www.mississauga4sale.com/market-value-real-estate.htm

Yes, you can do a home inspection. The bank does not want any problems before or after the closing, they just want the property sold and off their books, thus they will often accept offers conditional upon home inspection. But, if you are in a competing situation, the bank will likely accept the highest non-conditional offer. This is understandable.

Yes, they will also accept a conditional upon financing offer, but again, if you are in competing offers, the best offer will often be accepted before a conditional offer. Thus, you need to get your financing in order ahead of time.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com



Saturday, July 18, 2009

RE: Power of Sale Listing

This is another power of sale question that I thought I would share the answer with you.

Dear Mark
I found your information on Power of Sale are excellent.
Just wonder if purchaser needs to pay GST when buying a property from Power of Sale.
Kindly advise.
Best Regards
L.C.

Question was:
Hello L.C.,

Thank you for your real estate inquiry. You do not have to pay GST on a POS property purchase, similar to most resale purchases.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Thursday, July 16, 2009

Foreclosure and Pre-Forclosure in GTA

This is a common question that I receive about foreclosure properties and thought I would share it with you.

Hi my name is D. and i'm looking for Pre-foreclosures in the Brampton,Mississauga, Oakville, and North York area.

If you can assist me in buyingthese properties at least 20% it's market value it would be greatlyappreciated. Hope to hear from you soon, take care.

Thanks
D.


Hi D,

Thank you for your real estate inquiry. I've not seen any pre-foreclosures or foreclosures of any type in the GTA in many years. Foreclosure is a remedy in the USA and some provinces in Canada, but not Ontario. The most popular method of banks when an owner is in default in Ontario is Power of Sale.

20% under market value is also seldom found, but does happen occasionally, you'll have to watch for those great opportunities from my list.

Use
http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
this link if you have not already signed up to receive a daily list of new
and changed Power of Sale Properties
http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
in the GTA

Please let me know if you would like to see inside any of these power of
sale properties. You can read all about Power of Sale Properties at this
page
http://www.mississauga4sale.com/Power-of-Sale-Bank-Foreclosure-FAQ.htm

Let me know if you have any other questions or if there is anything else I
can help you with.

Thank you again for contacting me and I will do my best to help you with
your real estate needs,

Mark

Wednesday, July 01, 2009

Power of Sales and Bank Foreclosure Question

I had a question from a reader and thought I would share my answer:

Question: My understanding is that the bank must list the property for what is owed,
including any seconds and thirds. Is this true?

Answer: The mortgagee processing the POS is under no obligation and owes no duty to
subsequent mortgagees. This is why you will occasionally see a 2nd or 3rd
mortgagee bring the first mortgage into good standing and stall or stop the
POS to protect their interests.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

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Thursday, March 26, 2009

Pre-Foreclosures in GTA - do they exist?

I get asked about pre-foreclosure properties quite often, so I thought I would post a question and my answer below.

Hi Mark,

Do you have any thing on pre-foreclosures?

Do you have properties where there can be discounts of 30 to 50%?

Of course there has to be room for profit;foreclosure don't work so well that way or do they?

Are you able to provide the deep discount properties?

Thanks Mark,

GG

Hello GG,

Our system in Ontario is not set up for pre-foreclosures. Pre-foreclosure is a US term or out of province term, does not happen in Ontario very often.
I've not seen any properties at 30 to 50% off market value, not in the GTA. Sometimes 10% and rarely more, but it does happen.
Again, seldom are there foreclosures in Ontario, it's almost always POS.
Thank you,
Mark


Wednesday, March 25, 2009

Pre Power of Sale Properties question and answer

Hi Mark,
I understand what you have said about new and changed Power of Sale Properties in the GTA.
But Mark don't you have people calling you occasionally who are in fear of going into power of sale and ask you to sell there home for them before the bank takes over?
Thank you,
VE
Hello VE,
Yes, occasionally I get people who are in trouble and have been served POS proceedings, but often by that time they are so far behind that it will sell for less when it eventually goes POS.
I have one person right now, but they are 5 months behind, the bank just wrote them for the final time and their mortgage, arrears interest and bank legal fees are about 25k more than what the property is worth.
In this case the people will just wait it out, let the bank sell the property and then leave.
I will keep you signed up to the list, their are some very good deals that come out of that list, just have to keep watching.
Thank you,
Mark

Friday, March 13, 2009

POS property purchasing something of lower value?

I had another question about power of sale properties and I thought I would share the question and my answer, Mark

Hi Mark,

I've read through your section on Power of Sale & found it very helpful, but I just don't understand this one point & was hoping you can clarify for me - "One saying about Power of Sale Properties is "you get a lower price but it's a lessor product" " - does this mean I may be purchasing something of lower value?

Thanks in advance,

SL

Hello SL,

Thanks for your comment and question. Yes, generally speaking you are purchasing a lesser product. This means that the property you are purchasing may not have window coverings, appliances etc. included and the property could require some renovations or improvements.

In addition to this you are taking more risk such as the seller redeeming before closing, no warranties on anything, buying as is, where is, etc. so you are effectively purchasing a property with less inclusions and higher risk compared to 'regular' properties for sale in the same area. With this said, this is why you will usually be able to purchase a POS at a lower price.

I hope this helps.

Please let me know if you have other questions.

Mark

Thursday, December 11, 2008

Bank of Canada announces foreclosures may increase

The Bank of Canada just issued a press release (seee below) stating that the number of people that may default on their mortgages and loans will increase if the current financial crisis continues and deepens here in Canada.

Specifically the bank states "With household balance sheets under pressure from weak equity markets, softening house prices, slowing income growth, and record-high debt-to-income ratios, a severe economic downturn could result in a substantial increase in default rates on household debt"

The Bank of Canada calls them foreclosures, but I want to point out that here in Ontario the preferred method when a person defaults on their mortgage is Power of Sale (POS). In POS the bank sells the property under it's right contained in the mortgage that you gave them in return for them giving you the money. Remember that time, you needed the money to buy the house, so the bank gave you the money but in return you gave the bank the mortgage!

So, when you default on the mortgage, the bank will sell the property and try and recoup their losses, but if they are still out of pocket, they also retain the right to sue you for their losses. This is the main reason why so many people who lose their homes through power of sale also go bankrupt, because they still owe the debt until they are bankrupt.

You can read more about Power of Sale at this page:
http://www.mississauga4sale.com/POS

This is the press release just issued by the Bank of Canada:


Bank of Canada warns of possible mass home foreclosures if conditions worsen
2 hours ago
OTTAWA — The Bank of Canada is warning of severe economic turmoil, including the risk of many Canadians losing their homes, if the financial-market crisis worsens.
The central bank's December financial systems review says the "most likely outcome" is for markets and credit conditions in Canada to gradually improve as extraordinary measures by central banks and governments take hold.
But that outcome is by no means certain, it warns, saying uncertainties remain about how long it will take for credit markets to return to normal.
And if global financial conditions deteriorate, the bank warns the repercussions for Canada could be serious, including a deep and prolonged recession, slow income growth and severe trouble for Canadians already carrying heavy debt loads.
"With household balance sheets under pressure from weak equity markets, softening house prices, slowing income growth, and record-high debt-to-income ratios, a severe economic downturn could result in a substantial increase in default rates on household debt," the review states.
Canadian banks are among the best-capitalized in the world but would not emerge unscathed, the central bank's analysis concludes.
Much as has happened in the United States, the document says household debt woes could be a channel of contagion spreading through the banking system and cause even greater tightening in the availability of credit.
Banks are somewhat insulated by mortgage insurance, but the Bank of Canada says a severe economic downturn would nonetheless put pressure on their capital ratios.




For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, November 26, 2008

Foreclosures in Ontario or Power of Sale?

A common question I get asked is, 'please send me your list of foreclosures in the GTA"

See the question from an avid reader and my answer below.

From: Joe [mailto:joe.....@yahoo.ca]
Sent: Monday, November 24, 2008 10:34 AM
To: A. Mark Argentino, Broker, P.Eng.,
Subject: I would like to see inside this Power of Sale Property


Hi Mark,
I really like your listings for POS.
Do you have a list of Bank owned foreclosures or Bank owned homes for sale? That list would be outstanding!

Joe

My answer is:

Hi Joe,
There are very few (if any) foreclosure properties in the GTA, they are all POS based upon my observations.
It appears that the banks don't like to own homes in Ontario and the law is not set up for ownership as much as it is for the preferred method of selling when an owner is in default. The preferred method is by selling the property using the power of sale clause contained within the mortgage. Read more about this at Foreclosure and Power of Sale Properties Explained
Please let me know if you have any other questions.
All the best,
Mark
You will find all the POS properties that are currently available at this page

Please let me know if you would like to see inside any of these power of sale properties. You can read all about Power of Sale Properties at this page.

Thank you,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Wednesday, November 05, 2008

Power of Sales and Bank Foreclosure - what's the difference?

These are a couple of questions with answers that someone recently asked me regarding POS and foreclosure properties.

Hi Mark,
What are your requirements for the down payment for the purchase of any property listed in the Power of Sale? what is the minimum downpayment the you require?
What is the difference between the properties listed in the Power of Sale and foreclosed properties?
Thanks and regards,
L.
My answers to the questions are:



Hello Liezla,

Downpayment for POS is same as for regular properties, 5% is now the minimum with CMHC

POS means the bank is selling under the privilege contained in the mortgage, owner still has deed to property, foreclosure means the bank has taken over the property and owns the property and is selling the property.

Please let me know if you have any more questions.

Thank you,
Mark

Wednesday, October 24, 2007

CMHC's new snapshot of Canadian housing

CMHC's new snapshot of Canadian housing

Canada Mortgage and Housing Corp. (CMHC) recently released its annual state of the nation report on housing. The 2007 Canadian Housing Observer says building greener homes in higher-density neighbourhoods near public transit, rather than in sprawling suburbs, is key to reducing the housing sector's impact on the environment and lowering greenhouse gas emissions.

The 2007 Canadian Housing Observer analyzes the relationship between environment-friendly housing construction, neighbourhood design and transportation. It found that downtown living, which provides easy access to workplaces, schools, and shops, as well as housing located close to public transit, lead to reduced automobile use. Also, better design of the suburbs results in less short-distance driving and lower greenhouse gas emissions.

The 2007 Canadian Housing Observer also examines recent trends in affordable housing, housing finance and market developments. A key conclusion about the living conditions of Canadians, which is based on new CMHC information, found that the level of Canadians living in core housing need has declined slightly from 13.9 per cent in 2002 to 13.6 per cent in 2004. Core housing need is defined as "Households which occupy housing that falls below dwelling adequacy, suitability or affordability standards, and which spends 30 per cent or more of their before-tax income for the median rent of alternative local market housing that meets all three standards."

Other key findings of this year's Canadian Housing Observer include:
- Housing-related spending grew by 6.1 per cent in 2006, contributing more than $275 billion to the Canadian economy;
- Total mortgage credit outstanding in 2006 reached an annual average of $694 billion, up 10.7 per cent from 2005. This is mainly due to increased property values, which in turn increased the average mortgage amount approved;
- All of the fastest-growing metropolitan areas in recent years were in Alberta, Ontario and British Columbia, with the exceptions of Moncton, N.B. and Sherbrooke, Québec.
- Canada's population grew at a slightly faster pace in recent years than in the late 1990s mainly due to increased immigration. Senior, immigrant and Aboriginal groups are growing more rapidly than the general population. From 2001 to 2006, the vast majority (86 per cent) of population growth took place in metropolitan areas.
- The number of households in Canada owning second homes, vacation homes, or cottages reached 1.1 million in 2005, about 200,000 more than in 1999. From 1990 to 2004, high-income earners enjoyed much stronger income growth than those with low incomes. From 1999 to 2005, the average net worth of households in Canada, after adjusting for inflation, grew at an annual rate of more than four per cent. Increased equity in real estate played a major role in this increase.
- In 2006, the proportion of gross domestic product spent on housing increased to 19.1 per cent compared to 18.9 per cent the previous year.
- Total spending on housing renovations, repair and maintenance reached $43.9 billion in 2006, an increase of nine per
cent compared to 2005.
- From a record low of 5.99 per cent in 2005, mortgage rates rose to an average posted rate of 6.66 per cent for a five-year term mortgage in 2006. They were still low by historical standards. CMHC's 2006 Mortgage Consumer Survey found that the majority of mortgage consumers (84 per cent) were satisfied with the services they received when negotiating their current mortgage. About 70 per cent of mortgage consumers prefer to use one of the major lending institutions to obtain a mortgage.
- Urban households in British Columbia and Ontario continued to experience a high level of core housing need between 2002 and 2004. One-person households accounted for almost half (46.7 per cent) of Canadian urban households in core housing need, up from 43.7 per cent in 2002. The incidence of core housing need among senior-led urban households declined from 15.4 per cent in 2002 to 13.9 per cent in 2004. The percentage of immigrant urban tenant households in core housing need increased to 36.3 per cent in 2004 from 34.4 per cent in 2002.
- The 20 per cent of households having the lowest incomes accounted for about 81 per cent of all urban households in core housing need in 2004, up from about 78 per cent in 2002. Courtesy of R.Paul Chadwick TD/CT

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Friday, September 07, 2007

Title insurance policies and content can differ widely

Title insurance policies and content can differ widely

Are all title insurance policies the same? Are the coverages provided by the various title insurance companies so similar that it doesn't matter which one you choose?

These questions arise in the wake of a recent article on title insurance which appeared in the Aug. 18 New in Homes. The article quoted Toronto real estate lawyer Bruce McKenna, and Mississauga lawyer Lorne Shuman, who works for First Canadian Title.

"Both Shuman and McKenna suggest purchasers go with the insurance provider recommended by their lawyer," the article said, adding that "while there are small differences between providers, your lawyer will be working with the provider he or she feels is best for you."

McKenna is also quoted as saying that, "basically, the coverages are so similar and the market pressures to deal with claims in a reasonable way are so large that I don't feel the insurer matters very much."

I have to differ, but in doing so I should first point out in fairness that I am an elected bencher (director) of the Law Society of Upper Canada, which owns the Lawyers Professional Indemnity Company (LawPRO). That company insures all Ontario lawyers for errors and omissions, and also owns TitlePLUS, one of several licensed title insurance companies in Ontario.

In my capacity as a Law Society bencher, my legal duty is to assist in governing Ontario lawyers in the public interest. I am not, however, a cheerleader for the Law Society.

I have no role in the operations of LawPRO or TitlePLUS except to approve or not approve their annual reports, along with more than 50 other bencher colleagues. I do not sit on the board of LawPRO and do not attend its meetings.

Having said that, I feel compelled to explain that there is, in my opinion, a significant difference among title insurers. Conventional title insurance policies cover a lawyer's negligence only if the mistake relates to a loss that is listed in the policy as an insured risk.

In contrast, only TitlePLUS routinely makes available comprehensive coverage for the legal services provided by a lawyer, in addition to the listed risks. In other words, any negligence by a lawyer in a real estate transaction is covered by a TitlePLUS policy, whether or not the mistake is an insured risk set out in the policy.

What this means is that in a real estate transaction, if a lawyer makes an error amounting to negligence, the legal services coverage in a TitlePLUS policy protects the homeowner, even if the lawyer's mistake is not related to one of the itemized title risks insured by the policy.

One example of legal services coverage occurred when the buyer of a condo unit told her lawyer she wanted to pay cash, but wound up getting stuck with paying interest on a vendor-take-back mortgage during the interim occupancy period. The legal services provision in the TitlePLUS policy compensated the buyer for her $9,000 loss – even though the policy did not specifically insure against this type of loss.

Without the coverage, the client would have had to sue the lawyer for the loss.

The Aug. 18 article also quotes Lorne Shuman as saying that title insurance costs about $299 for a house purchase with a mortgage, but it varies with properties and price range.

In fact, there is a significant difference in the cost of residential title insurance policies among three companies that I called last week. For a resale house selling at between $200,000 and $500,000, with one institutional mortgage, First Canadian Title (FCT) quoted $322.92. Stewart Title Guaranty Company (STG) quoted $351, and TitlePLUS (TP) quoted $238.80 including the legal services coverage.

For new homes, the premiums drop to $268.92 (FCT), $324 (STG), and $233.10 (TP). In both of these types of policies, Stewart Title rebates a fee of $100 to qualified lawyers who arrange coverage over the Internet. The fee must be disclosed to the lawyer's client.

For resale condominium units in the same price range, the premiums are $193.32 (FCT), $189 (STG) and $184.80 (TP).

Whenever I can, I use TitlePLUS policies for purchaser clients. The cost is lower, and the coverage is – in my opinion – far superior.
by: Bob Aaron from the Toronto Star

Read More about Title Insurance

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Saturday, July 14, 2007

New Section about Power of Sales, Foreclosures and Quit Claim Deeds in this section

Power of Sale and ForeclosureI've recently added a New Power of Sale section to my website that will show you the pitfalls to avoid and the clauses to put into your offer when you buy a Power of Sale property in Ontario. This new section will also explain Power of Sale and Foreclosure in detail. Read more here.


You will become educated about Power of Sales, Foreclosures and Quit Claim Deeds in this section.

You will learn the pitfalls to avoid, the clauses you could expect to see in an offer and read about the special clauses you can insert into your offer when you buy a Power of Sale Property. I will also explain the remedies open to sellers of these types of properties and how this affects you.

Power of Sales, Foreclosures and Quit Claim Deeds in this section.

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Thursday, February 22, 2007

Tax Sale Properties in Ontario - How can you find them?

Power of Sales, Foreclosures and Bank Sales Alert for Mississauga, Oakville and Brampton

Example of the procedure of selling a tax sale property


Before there is a sale of property for tax arrears the property owner is given every opportunity to pay the taxes in full in order to keep possession of their property. This right has been supported by the Ontario Court of Appeal.


As the City or Municipality is only interested in recovering the debt outstanding, they typically adhere to the principal that the owner is given all chances to bring the taxes up to date and where an arrangement to pay has been made between the owner and the city, the tax sale of an advertised property will be cancelled.


Sometimes a tax sale does not occur, nobody bids on a property and the property becomes vested with the city or Municipality. Reasons for this can be where there are no bids during the tax sale and the property becomes vested with the city. Some of the reasons for this include but are not limited to:



  • there is an easement on the land and building on it is restricted,

  • the property is so small that building on it would not be allowed,

  • the property is land locked and not accessible,

  • the zoning of the land limits its use,

  • the property is in such disrepair that it is not worth the taxes owed, etc.


In these situations with the exception of the last example the city or municipality may try and identify any restrictions so that bidders are fully aware before they bid and commit their 20% deposit which will be forfeited should the bidder not close the sale.


Where the tax sale has no bids, the City has one year from a failed tax sale to decide whether the City wants to vest the property to itself. If there are any concerns as to contamination or the safety of a building structure then the city will analyze the available data to decide if the city should assume any risk in putting the property in the City's name.


Where it is determined that the City will not vest the property they may issue a Request for Offers and attempt to spur development by accepting much less than the taxes owed while limiting our risk of ownership to a very short period. Examples of these types of properties are where the taxes owed are much more than the assessed value. The City can also choose to do nothing with the property and then start the whole tax process again on that property.


Where a property did get sold at the tax sale the price bid for that property must be at least the taxes owing (minimum bid). Where the bid was for more than the taxes owing the balance is paid into Provincial Court and any other creditors that were registered on title can then make a claim for the excess funds.


On properties for which there is no bid and it is indicated that the property is vested to the City, usually the Real Estate Department becomes responsible for the property. They will work with Power of Sales Propertiestransferring title to any adjoining owners, transferring title to another government agency (i.e. conservation, authority), the city may potentially require the property for its own use, or the Real Estate Department may market the property and attempt to then get the best price available for the property. Often the city or municipality will market the property on the MLS. These properties are then available to the general public through agents like myself.

I can send you a list of foreclosure properties if you use my online form.


As you can see, the process can become quite complicated and may take many months or years to conclude.


For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com