Tell me how to power my way through a power of sale.
March 17, 2006 10:31 AM Subscribe
Does anyone have experience with/knowledge about buying a Power of Sale property, and if so, would they care to share same with me?
I'm shopping for a house in Toronto. At present I own a condo I'll be putting up for sale when I firm up a deal on a house. Last weekend I viewed a house I thought had a lot of potential. It seems structurally sound, though it needs quite a bit of cosmetic work I can mostly do myself. Once that's done, the house could be quite lovely. And it's a good deal.
The house is power of sale and the vendor is the Canada Mortgage and Housing Corporation (CMHC). Scotiabank had tried to sell it before CMHC had to take it over. The property has been on the market for 130 days or thereabout - this is an eon in Toronto real estate.
I made an offer this past Monday. The next day they got back to me with a counteroffer. They'd crossed out NINE clauses on the contract and amended two more. They'd only come down a thousand in price and also wanted to move the closing date ahead by two weeks. My realtor said it might be okay, but it made her very, very nervous. So I backed out of negotiations.
My plan is that I'll try again in another month or so if the house remains on the market. CMHC is going to need to unload this house sooner or later and I'm thinking they'll have to soften their stance at least somewhat to do it.
I'm now working on learning as much as I can about the power of sale process. Yes, I have a realtor I trust, yes, I have a lawyer, yes, I will be making my offer conditional building inspection. But since I have to pay the latter two at least on a per-task basis, I'm trying to do some research on my own.
So, if any of you have any information or tips or experiences to share, I'm all ears. Or eyes, as the case may be;-)
I'm shopping for a house in Toronto. At present I own a condo I'll be putting up for sale when I firm up a deal on a house. Last weekend I viewed a house I thought had a lot of potential. It seems structurally sound, though it needs quite a bit of cosmetic work I can mostly do myself. Once that's done, the house could be quite lovely. And it's a good deal.
The house is power of sale and the vendor is the Canada Mortgage and Housing Corporation (CMHC). Scotiabank had tried to sell it before CMHC had to take it over. The property has been on the market for 130 days or thereabout - this is an eon in Toronto real estate.
I made an offer this past Monday. The next day they got back to me with a counteroffer. They'd crossed out NINE clauses on the contract and amended two more. They'd only come down a thousand in price and also wanted to move the closing date ahead by two weeks. My realtor said it might be okay, but it made her very, very nervous. So I backed out of negotiations.
My plan is that I'll try again in another month or so if the house remains on the market. CMHC is going to need to unload this house sooner or later and I'm thinking they'll have to soften their stance at least somewhat to do it.
I'm now working on learning as much as I can about the power of sale process. Yes, I have a realtor I trust, yes, I have a lawyer, yes, I will be making my offer conditional building inspection. But since I have to pay the latter two at least on a per-task basis, I'm trying to do some research on my own.
So, if any of you have any information or tips or experiences to share, I'm all ears. Or eyes, as the case may be;-)
Response by poster: They have reduced the original asking price by $13,000. I'm hoping to get them to come down another $6,000 to $9,000.
Financial institutions do not want to have to these houses on their hands indefinitely. They have to pay any operating costs, taxes, and the like. They're responsible for securing the property. The interest on the debt accrues daily. They will have to cut their losses eventually.
posted by orange swan at 11:21 AM on March 17, 2006
Financial institutions do not want to have to these houses on their hands indefinitely. They have to pay any operating costs, taxes, and the like. They're responsible for securing the property. The interest on the debt accrues daily. They will have to cut their losses eventually.
posted by orange swan at 11:21 AM on March 17, 2006
This thread is closed to new comments.
How to talk down a financial institution in a foreclosure sale? I doubt you can. They have no urgent need to sell the property, so they're willing to wait until a buyer comes along who can meet the price they want to get for the property. They have appraisers on staff who specialize in pricing properties. You say "it's a good deal" which suggests that they've priced it appropriately to the market, so...
posted by jellicle at 11:12 AM on March 17, 2006