New to this site

[Taz]

Hi Everyone,

I recently found this site, as I was searching for particular information on a possible Power of Sale (POS).
Amazing site and people and the knowledge level is great!
This question may not fit in here, please forgive me and guide me as to where I need to add this.

I am a newbie to all this and would like to ask about how do I go about knowing when a property will go for sale, after POS lien has been on the property?

I know of a property that was used probably used on weekend by the owner, unfortunately the owner has passed away without paying taxes for a while. On further enquiry, I found out that the pipe burst over the Winter and there was damage to the floors. I managed to get in touch with the bank who is holding the mortgage, the banker informed me that the property will be for sale but may take a long time, they will get rid of the furniture and repair the floor before they sale it. She said they will list it with the Real Estate Sales person who last sold it, about a year ago. (The property is very small and will probably be sold for the regular market price with a POS notice, but it meets my budget needs.)

On further research I also found the regular residence of this owner who has passed away, but unfortunately, no one else lives at this address either and the van had no licence plate and there were quite a few mail out side the door.

How do I go about finding out if the Municipality would take over, or will the bank continue to do whatever it has to do to put the property on sale through the real estate agent?

I have visited the Municipality website without any success. I understand that it takes 3 years of unpaid taxes before the Government will give a POS notice to the owner. Does the bank wait that long? I do not think so, but please correct me if I am wrong. What do I do? How do I find out if the owner had heirs who will redeem this property or is this property going to be sold by the bank? I telephone the lady at the bank 2nd time after 2-3 months from the 1st call, and did not hear from her to date, and the real estate agent who is supposed to get the listing has still not heard from her either. The property still shows the name of the deceased person. It is now almost 6 months since I found out about the property.

Does anyone know what the actual process is in this case and how do I go about finding out if this property will sell or not? Any information will be greatly appreciated.

[MHT]

With the bank having started POS procedures, they will be paying the taxes so that they do not lose out on their loan.  If there is a mortgage on a property then it is not very likely to go to tax sale unless there is some major issue that the bank figures will cost them more than what they will lose by letting the property be sold by a municipality.  Banks need to show that they have attempted to get fair market value for the property so will indeed list the property with an agent (as they mentioned to you). Be sure to keep in contact with the agent so that you will get in as soon as the home is listed.  Most lenders will require that the home is on the market for at least a few days prior to accepting an offer but some lenders' policies will vary so get in right away.  Often times agents do not make much on the listing end of a POS listing so the agent will likely be very motivated to find a buyer for the property (that's where you come in!!).  Is there a white paper in the front window of the property for the property management company?  Usually, if the bank has started POS procedures and has possession of the home, the odds are not very high that it will be redeemed by the current owner/heirs. Good luck   

[Pfm1011]

(The property is very small and will probably be sold for the regular market price with a POS notice, but it meets my budget needs.)


The bank will actually list it for 15 to 20 % over market value of the  highest house on the street  or the subject house if it was in mint shape as they must get market value or the family of old owner can sue them.  The stupidity is that buyers see POS and think bargain and pay the stupid amount.   In the GTA  Power of sales are substantially more expensive then regular sales due to the frenzy of buyers and percieved "must buy now or lose the deal"

Be sure to keep in contact with the agent so that you will get in as soon as the home is listed.  Most lenders will require that the home is on the market for at least a few days prior to accepting an offer but some lenders' policies will vary so get in right away.  Often times agents do not make much on the listing end of a POS listing so the agent will likely be very motivated to find a buyer for the property (that's where you come in!!).

Oh ....and none of the "fine realtors" will tell you you are getting screwed and commiting financial suicide .."so get in right away"  effin   douchebag realtor , you aholes just cant help yourself..


If the bank were going to let it go at a bargain they would do so to friends  of bank employees ..(what bank manager isnt going to tell a friend that there is a deal to be had??)

Generally run from the POS as It is the same stupity that take place at auction..and you have the same warranty and rights...NONE

  The buyer of POS properties get screwed.  Just ask yourself    why arent any of our "fine realtors" picking up these deals??

[MHT]

(The property is very small and will probably be sold for the regular market price with a POS notice, but it meets my budget needs.)


The bank will actually list it for 15 to 20 % over market value of the  highest house on the street  or the subject house if it was in mint shape as they must get market value or the family of old owner can sue them.  The stupidity is that buyers see POS and think bargain and pay the stupid amount.   In the GTA  Power of sales are substantially more expensive then regular sales due to the frenzy of buyers and percieved "must buy now or lose the deal"

Be sure to keep in contact with the agent so that you will get in as soon as the home is listed.  Most lenders will require that the home is on the market for at least a few days prior to accepting an offer but some lenders' policies will vary so get in right away.  Often times agents do not make much on the listing end of a POS listing so the agent will likely be very motivated to find a buyer for the property (that's where you come in!!).

Oh ....and none of the "fine realtors" will tell you you are getting screwed and commiting financial suicide .."so get in right away"  effin   douchebag realtor , you aholes just cant help yourself..


If the bank were going to let it go at a bargain they would do so to friends  of bank employees ..(what bank manager isnt going to tell a friend that there is a deal to be had??)

Generally run from the POS as It is the same stupity that take place at auction..and you have the same warranty and rights...NONE

  The buyer of POS properties get screwed.  Just ask yourself    why arent any of our "fine realtors" picking up these deals??

Wow, your ignorance shines through in this post.  Not even worth explaining the errors in your post as you obviously have come to a judgement of all REALTORS based on some past experience. 

[Taz]

Thank you MHT and Pfm1011 for sharing your knowledge. I will be visiting the property this weekend, to see if there is a white paper on the property or not. Yes, I have kept in touch with the Real Estate Sales person and also have access to the listing, which I keep checking on a regularly.
Many thxs
Taz

[madawaskavalleygypsy]

Hi folks! I just purchased a POS, to close in a few days. Yes they can have issues, mine has vermiculite insulation contaminated with asbestos fibers but I got it at such a good price that the $10,000.00 removal fee will not hurt my investment.

Excellent info from MHT!!

A few more things to think about:

1. The anticipated Realtor does not always get the listing so keep watch on realtor.ca just in case.

2. In my experience POS are initially listed very close to market value but that may vary with location, if not sold within a time frame that somewhat exceeds the average sale time of a given area the price will eventually be reduced. If the Bank does not manage to sell it within several months (not sure if there is a specific # of months) and the mortgage is insured, the insurer will then take posession of the property and after another several months they will offer it for sale, this is typically when the bargain prices appear & often multiple offers.

3. Inspect the property in as much detail as you can when you view it so you are prepared for negotiations. Banks & Mortgage Insurers rerely accept the initial offer without a sign-back & any conditions you've included may be removed.

Best of Luck!!

[Taz]

Many thanks madawaskavalleygypsy, And thanks MHT, I visited the property yesterday and there was not white paper on the door or any where, but what was interesting is the sofa was changed and there were a few changes that was noticed through the windows, but there was not one to ask, s I will continue to look into it.

I appreciate all your suggestions and replies, excellent ideas.!