Showing posts with label power-of-sale. Show all posts
Showing posts with label power-of-sale. Show all posts

Friday, February 24, 2023

Bank of Canada current interest rate



In January 2023 the Bank of Canada raised it's benchmark interest rate again, this time to 4.50%

Bank of Canada raises borrowing costs for seventh time in a row amid stubbornly high inflation. The Central bank has been raising rates aggressively to rein in sky-high inflation.

Since March of 2022, the central bank has raised its key interest rate six consecutive times, bringing it from 0.25 per cent to 4.50 per cent.

The Bank of Canada hiked its trendsetting interest rate by 1/2 percentage point on Wednesday.

The current rate is 4.50%

The Bank Prime rate for most lenders now stands at 6.70%
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

Sunday, January 01, 2023

See current POS properties across the GTA below




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

Monday, March 12, 2012

What does the as is - where is term mean when you purchase a Power of Sale property

I was recently asked about the term 'as is - where is' when it pertains to a
Power of Sale property.

The question was:

Hi Mark,

I am enjoying your newsletter, and want to thank you for the vast amount of useful information on your web site.

I have a couple questions for you. Could you provide details regarding listings that I have found recently that post properties as being sold under "As-Is, Where-Is" conditions. Is it safe to assume that an "As-Is" sale is typically a power of sale situation (where the seller is a bank, who in turn is offering no warranties whatsoever? And what about the "Where-Is" stipulation??


The term suggests to me that there is perhaps some issue of encroachment on property lines or set-backs, or that there is some other non-conforming aspect to the property.


Your help in this matter would be greatly appreciated.


John




Hi John,

Thank you for your kind comment, glad you are finding my newsletters it useful.

I can't really give legal advice regarding 'as is - where is' this is a legal term used in contracts. Suffice it to say, as you have pointed out, that yes when you see this on a listing it is used most often in Power of Sale situations. It's also used in estate sales and other situations too.

Since the onus of disclosure is on the seller to disclose "material facts" that may affect market value, this is why the banks and others) use the as is where is clause. When a bank is selling, they don't know anything about the property and really have 'no knowledge' about the property and don't want to spend time or money investigating the condition of the property to give proper disclosure, thus again, the as is where is.

We agents interpret the "as is, where is" to mean that you are purchasing the property in as is condition, no warranties whatsoever for anything. The "where is" is likely as you say, plus you are accepting chattels and fixtures 'where is' and where they are located and no express or implied warranty as to working condition or meeting any building code, electrical or plumbing codes or guidelines etc. Encroachments, easements, rights of way and any other outside influences and affect on market value are also assumed by the purchaser

Theoretically, when you purchase as is where is, you are literally buying the property in it's current state. This is also part of the reason that the banks usually insert a clause into the offer that you the buyer are NOT allowed back into the property once the agreement is finalized. They don't want anything happening to the property between agreement date and closing.

So what does this mean to you as a buyer? You need to have full inspections and I even recommend knocking on neighbors doors to see if they know of any current of past problems related to the property. Many times the properties are grow houses or meth labs and are in need of major renovations and improvements. Neighbours can be helpful with this too.

How big is your risk buying one of these properties? It depends. If you are buying a home in a typical subdivision and you get good information on similar homes and such, I think the risk is minimal. If you are buying a unique home or property and you skimp on inspections or due diligence, your risk could be significant. After all, with an "as is - where is" property, whatever problems you discover after you close on the property become your issues to rectify and most important is that you will have no recourse against the seller after the closing.

In a nut shell, you must do your due diligence ahead of time. Such as home inspection, legal investigations, by law inquiries, etc, before you submit your offer, or at the very least make your offer conditional upon these inquires. The practical problem with this is that typically in power of sale situations there are multiple offers, and the offers with conditions are often not accepted. With that said, the banks also realize that purchasers must do their due diligence and will often accept conditional offers as long as the conditions and time periods of the conditions are reasonable.

Great question and no short answer! This is why in all POS situations I insist that the buyer consults their lawyer ahead of time, it's very complicated and presents many obstacles and potential issues. Please let me know if you have any other questions or require further
information.


Thank you,


Mark

Thursday, November 03, 2011

Sherriff sales do they sell for market value or a deep discount?

I had a question about a Sherriff sale and thought I would share my answer
with you.

The question was:


Hi Mark

Can you tell me please if you are familiar with the properties that are sold
by the Sheriff when he home owners lose out to banks or credit card
companies in hard times.

Typically do such properties go for market value or is there a possibility
that they can be had for a steep discount.

Many Thanks

H.



My answer was:

This is a good question. A Sherriff sale is almost always sealed bidding,
so not too many details are known, except final winning bidder price.
Typically a Sherriff's sale will attract people from all over the area or
province.

If it's in a city, my understanding from speaking with people who have
attended recent Sherriff sales is that the properties sell for about what
they are worth, meaning at or near market value. Sherriff sales are
typically properties that are inaccessible, have structural, mould, fire or
other major problems or that the land is unusable because it is swamp or
inaccessible by road or any other type of major impairment that affects
market value.

If the Sherriff sale is for a 'regular' city type of property, as long as it
does not have any major deficiencies, then it will likely sell for about
market value. I would recommend that you attend a Sherriff sale to see the
dynamics and familiarize yourself with the process and to get a feel for
what happens at the sale.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Thursday, April 08, 2010

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

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

Monday, March 01, 2010

Does bank remove appliances and chattels when a property sells under Power of Sale?

Another good question about Power of Sale Properties

A reader wrote:

I am reading your Power of Sale information with interest. In the case of a home with the owner living in it, what happens with normal things that go with a house, for example appliances, window coverings, light fixtures?

Would those be stripped by the old owner, negotiated or left behind?

Thank you,

Allison

Hello Allison,

Thank you for your real estate inquiry. Every POS property is different.

Usually, the owner just abandons the property and leaves it as is. Most often the appliances, light fixtures and window coverings are present and stay with the property. If the property was a grow house, the appliances may have to be disposed of.

Since the owner is locked out of the property once the property is under power of sale, they have no method of 'legally' entering the property and recovering the appliances, so they almost always are there upon closing.

Usually, once a property has gone power of sale, the owner has moved out and on with their lives and trying to get back on their feet after or during this time they typically declare bankruptcy, but not always.

I've only seen one property under power of sale where the owner was still in the property. It was a unique situation where there was mortgage fraud involved, so the owner was not at fault and only stayed until closing. I've seen a few cases where there is a tenant present in the property and this seriously complicates the entire sale and also puts appliances and other chattels in jeopardy of being present upon closing or not.

The bank selling the property under POS will not warrant that the appliances (or any chattels) are included with the sale, but they will not remove them either. The bank wants the sale to go through, they write off any losses, may go after the previous owner for any deficit (as long as the owner has not declared bankruptcy) and move on.

I hope this helps. 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

Do you want to receive Power of Sale listings?

Use this link if you have not already signed up to receive a daily list of new and changed Power of Sale Properties in the GTA


You can read all about Power of Sale Properties at this page.

Tuesday, February 23, 2010

Where can you find TAX Sale Properties?

This is another question that I received about Tax Sale Properties, and of course my answer!
Hi Mark, I have a question, we are interested in Tax Sale Homes for our business could you send me listings for those? Thanks and have a great day Sam
Hi Sam,
We don't see too many Tax Sale Properties on the MLS. Some realtors may do this for a fee, but I don't know of any. Buying a tax sale property is a very involved process, plus you have to submit sealed bids or be at the actual auction, so it takes up much time and effort. I think this is partly why they end up being reasonable purchases.
With that said, almost every single tax property I've looked at has a major deficiency of some kind. For example, it may be landlocked, it may be a very long thin slice of property of not much use, it may be just barren rock or very swampy lowlands, or a slice of land adjacent to major highway or railway that is not of much use, or 50 acres in the middle of nowhere with only a logging road to it (something of nice use, but not too much value) I think you get the idea. I am not trying to be negative, just giving you my experience. With that said, there was a tax sale property of a detached home on Britannia about a year ago, I don't know if it sold or if the owner paid up the taxes, I will try and hunt it down for my information and if I find it, I will email you again.
If you are in Mississauga (or any municipality for that matter), I would go to the tax office at city hall to obtain the next sale of properties to see what it's all about and the process and then you can decide if this is something you want to pursue.
I wish you all the best with your Tax Sale Search.
read more here:
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, February 04, 2010

How to find Tax Sale Properties in your Municipality

In order to find tax sale properties in your area, you have to contact each municipality, this is not an easy task!
Read more about the process here:
Please let me know if you have any other questions or if there is anything else I can help you with regarding tax sale properties.

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



Tuesday, September 15, 2009

Does GST apply with the sale of a Power of Sale Property?

I received the following question about GST and POS properties
Hi Mark,
I cam across your website with information about Power of Sale homes.
I was wondering if GST gets charged on a house that is listed as power of sale if it is a resale home (not from the builder).
Thanks!
S.
Hello S,

Thank you for your real estate inquiry. Generally, no GST is applicable. If the owner of the house selling under POS has performed extensive renovations and alterations, GST may apply, otherwise in 99% of the cases it does not apply

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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
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Thursday, June 04, 2009

Municipal Tax Sale Properties in GTA, Mississauga and Ontario

I received a question from a reader and thought I would share my answer with you.

Subject: Question/Your article on taxes

Hello Mark;

I found your web page
http://www.mississauga4sale.com/Power-Sales-TAX-Sales.htm and found your article fairly interesting. I am wondering if you could let me know how I can get a list of properties in default of taxes in Ontario/Canada before they appear on MLS? Is there a web site/Government web site that maintains such records? Or do I have to visit each municipality web site or directly call the municipality?

Sincerely
A.


Hi A.,
Thanks for your comments. Yes, you have to do the work.
I do not know of such a list, it's mostly hard work to seek out tax sales, each municipality publishes their own lists, so you have to scour local newspapers to find them.
No government site that I know of, again, it's a municipal sale, so it tends to be very local.
Thank you
Mark

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