- The Reality is: the Canadian Foreclosure market is not nearly as profitable as most people think
- The Reality is: Reality TV is FAR from the actual reality of flipping homes
- The Reality is: it takes longer than 30-60 minutes to flip a house
- The Reality is: Net Profits in Canadian Foreclosure are far less than USA net profits
- USA Foreclosure Law is VERY different than Canadian Law
- In the USA, the state, utility company or mortgage lender can foreclose for what is owing. That means, if the owner owes $5,000 in taxes, the state can foreclose for $5,000 and sell the home for that amount!
- Another difference is that American homeowner can deduct the mortgage interest of their primary residence, on their income tax
- In Canada, the home MUST be resold for “Fair Market Value”. Therefore lenders use Realtors to market their Foreclosed Real Estate, which adds tens of thousands in commissions.
- This process reduces the banks potential future liability, if a homeowner comes back 5 years later stating “You sold my house below market value”
- By the time legal costs and Realtor commissions are factored in, most Bank Owned Foreclosures aren’t great deals like you see on TV.
- Our objective is to make a reasonable profit, while helping the homeowner.
- We currently help 3-4 homeowners per year; we help with the legal process, the renovation, and ultimately the sale of the home.
- Our end goal is to change the mortgage lending framework in Alberta and Canada.
- Of course, the true reality of Foreclosure is that the homeowner has a black mark on their credit history for 7 long years. This prevents them from obtaining favourable lending rates for any loan for the next 7 years. This includes credit cards, car loans, a Line of Credit, etc.
- If you are facing Foreclosure, be sure to contact us ASAP!!! We can coach you through the process, or to see if your home qualifies for our program!