The time has come to address a significant issue for homebuyers, one that has been the pink elephant in the room for a long time: the buyer’s guilt regarding foreclosed properties. The Okotoks foreclosure listings make up for a significant percent of the market and for you to avoid them because of guilt would be a bad call. Especially because that guilt you may be feeling is misguided. As you may know, the Canadian law protects the original owner and doesn’t let banks sell foreclosed properties way under their market value. This means that when you buy a foreclosure, you may get a 20-25% discount, but that’s it. You will not see houses that are sold for half of their value, as it happens in other parts of the world.
This way, the original owner has the chance of getting back some of their money, the bank also gets back their money, and you can save 20-25% of a house’s value, money you can spend on improvements, furniture or how it pleases you. When you think of it this way, it a win-win-win situation. But how do you deal with the guilt?
It’s already happened
When you set your foot in that beautiful foreclosed house or even when you see the listing, know that the process has already started, and it is irreversible. The original owner has already been evicted, and nothing you could do can stop this process. Whether you buy the house, or somebody else does, the house is still being sold. Don’t feel like you are taking advantage of somebody’s bad luck because you are not buying the house from the original owner. The moment he or she stopped making payments to the bank and the foreclosure process has started, they have lost the ownership of the property. You are not buying from them; you are buying from the bank. Whether you decide to benefit from that 20-25% discount or not, the original owner has still lost the property.
And if you think the bad guy in this situation is the bank, think again. Because if there were no law to protect financial institutions in cases like this, all the banks would go bankrupt. You would lose your savings in this process, and even if you don’t have a savings account in a bank, you would still have to suffer because a situation like the one above would create world chaos. Yes, it is sad when somebody loses the ownership of their house, but nothing you could do can reverse the process and, even if this process could be stopped, it would negatively affect the entire world economy.
You don’t know the situation
Sometimes, a foreclosure is the result of a calculated risk. Some homeowners take this business decision and choose to submit their property to foreclosure because they consider it to be the best choice for their financial situation. And even if this is not the case, know that they still get some of their money back because the law protects them. If it were any other place on Earth, we wouldn’t be saying that. But in Canada, the foreclosure law is very strict, and it focuses on protecting the original owner.
Don’t feel guilty just because you have the chance of finding the house of your dreams at a lower price than what you expected. Benefit from it and don’t burden yourself with a responsibility that has nothing to do with you. For more information about foreclosures, contact us and check out our exclusive listings.