People have asked about Power of Sale properties in Brampton, Mississauga, and the GTA. There seems to be a misconception that these are the best properties to shop for… if you’re looking for a deal. In some cases, you may profit from this type of sale, however, that is typically not the case...
What is a power of sale?
Overall, it’s a Canadian lender’s duty to sell a power of sale home for as much as possible. They certainly don’t want to risk getting sued by the homeowners (if they sell below market value). In addition, there is a headache involved with missing/dysfunctional appliances and potential physical damage to the property. Not to mention the right for the owners to redeem if they can pay back the defaulted amount. I’m personally not a fan of this type of purchase.
Remember to speak to a lawyer if you have any further questions.
Source: “BUYING A POWER OF SALE PROPERTY“, Bernie Jankowski, Barrister, Solicitor & Notary Public