WAIT ON REPOS?

Many buyers in Canada are waiting for a wave of foreclosures, assuming they’ll be able to purchase repossessed homes at deep discounts. That strategy is flawed. With approximately 1.5 million mortgages coming up for renewal, there is concern that some homeowners may struggle with higher payments. However, Canadian foreclosure and power of sale properties are not sold at fire-sale prices. Lenders are required to sell as close to fair market value as possible and routinely reject low offers. These properties are typically sold as-is, without warranties or flexibility. Relying on distressed sales is speculation. Smart buyers focus on real market conditions, not headlines.

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