With the current economic climate foreclosures are becoming more and more common. However, the amount of homes being foreclosed is miniscule compared to our American counterparts because of our tighter lending laws in Canada. There is a chance to pick up a great home below market value but the foreclosure process is not for everybody. We deal with a number of foreclosure files every year and are very familiar and comfortable with the process if this is the route you choose to go.
There are pros and cons to every situation and the motto we use for foreclosures is greater risk, greater potential reward. Since the subject property is sold "As is, where is" the bank doesn't make any representations or warranties to the state the home will be in on the possession day OR guarantee that any of the appliances will be present. If the previous owners have moved out and the locks have been changed then there is a good chance that the unit will be in the same state as when you viewed the home, however, that is a risk that you take. If you do find a foreclosed property that you are interested in and there are no offers on the home then you can proceed with an offer.
The offer will be written similar to any resale property and a Schedule A will accompany the offer indemnifying the bank from any legal proceedings in the future(As is, where is). You may write your offer as you would any other :subject to financing, reading the strata documents, title search, inspection, etc. Once everything is in order and you remove your conditions then the accepted offer amount becomes public knowledge. A court date will then be set for a judge to approve the sale, this is usually about 3 weeks out but it does vary. On the day of court other parties that have interest in the home may come to court and put in a bid. If there is more than just the original bid then all parties will have a chance to make a sealed bid offer. The judge will then open all of the bids on the bench and select the highest bid and the home will be sold to that party.
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