Vincent La Fiura, Toronto Real Estate, Condos, Lofts, Townhouses, MLS Broker

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Power of Sale Homes in Toronto and the Gta

As the Toronto real estate market is in full flight with escalating home prices it's inevitable that the market will begin to see more power of sale homes appear on Toronto Mls. Buyers have been over extending themselves over the past little while and some are living house poor, even with the recent mortgage regulations that have been put into place to protect buyers from over leveraging themselves, buyers continue to over pay for homes that are overvalued by at least 5%.

 

Interest rates will rise in due time and that's when it's likely we might see a price correction in the marketplace. High end neighbourhoods like The Annex, Yorkville, High Park, Trinity Bellwoods, Queen West and even Bloor West Village will see its fair share of homes promoted as a power of sale Mls Listings as these neighbourhoods demand higher than average prices.

 

The biggest market to feel the brunt once interest rates begin to rise are Toronto condos as they are the most exposed, with over 17,000 new units being registered every year, occupying them will become more difficult as years pass. Even in today market some units are starting to shows signs of being under water with rents (rents do not cover cost of borrowed money, maintenance fees, utilities and property taxes) with the average cost of $500.00 per sq foot is what it's going to cost a buyer if they intend on buying a pre construction Toronto condo.

 

As a Toronto real estate agent my advise has always been to any type of buyer regardless of how savvy they are is to never buy a power of sale home, they are not worth the risk or the headache that comes with this type of home buying transaction.

 

 

I also attached the Wikipedia definition below, but it must be noted that a Forclosure is not the same as a Power of Sale property as indicted in the Wiki definition.

 

Formally, a mortgage lender (mortgagee), or other lien holder, obtains a termination of a mortgage borrower (mortgagor)'s equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure).[2]

 

Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, it is a cloud on title and the lender cannot be sure that (s)he can successfully repossess the property.[3] Therefore, through the process of foreclosure, the lender seeks to foreclose the equitable right of redemption and take both legal and equitable title to the property in fee simple.[4] Other lien holders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or assessments.

 

The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust." Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien." If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment.

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Power of Sale Homes

Toronto Real Estate Forclosures and Power Of Sales

These days, investors and home buyers have the advantage in the sturdy Toronto real estate market. Properties appreciated in the two digit range percentage in a certain area, are now getting affordable with people who have the cash and credit to make these purchases. Be careful though, don’t rush into things, finding a good realtor to help you search the inventory that is out there is crucial to your successes.

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Buying a Power of Sale in Toronto

Buying a power of Sale in Toronto?

Please read this article to learn the true facts;I have written about power of sale properties in Toronto before and I have had an overwhelming demand by my readership to continue to touch upon this subject further.

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The Risks of Buying A Power of Sale Home

With the holiday season come and gone its back to work for most Toronto Realtors, although it seems I didn't take more than 2 days off.  Since being back at the office I have touched base with some old leads that never seem to wanna get off the fence andbuy a home in Toronto or anywhere else for that matter; I named these types of buyers as Sam, as in the story of Sam should of. We don't want to harp on the motivation of certain types of buyers or their excuses for being left behind, but it's what most of them have been saying is what puzzles me most. It seems they all believe that they want to buy a Power of Sale. 

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Do Toronto Real Estate Short Sales Exist? | Homes in Toronto for Sale

Lately I have been asked this question from most of my clients as it seems all these real estate TV shows are promoting this type of transaction. The funny thing is that most Canadian real estate consumers have never heard the term short sale prior to the American real estate crash in 2007. Even my colleagues at Re/Max have never heard the term prior to 2008.

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Are you the type that will only buy a Power of Sale Home? Watch the video below and find out how Vincent can help you with your goals!

 

Click here to search for Homes being sold under Power of Sale

 

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A Realtors Risk when Dealing with a Power of Sale Home

I was in the office for most of the day, with that I was able to catch up with some of my colleagues about the usual stuff. I came across talking to Donna about a deal she had just put together involving a first time buyer and a power of sale, first I said to her was "good luck with that one D"

 

We started to chat about the deal and asked my opinion about how and what to watch for as this one is a little bit more complex than your ordinary power of sale home.

 

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Vincent La Fiura
Toronto Real Estate, Condos, Lofts, Townhouses, MLS Broker

Phone: 416-769-1616
Fax: 416-769-1524

 

RE/MAX West Realty Inc.
Brokerage, Independently Owned and Operated

1678 Bloor Street West, 4th Floor
Toronto, Ontario. M6P 1A9.

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